“To get rich, you have to be making money while you’re asleep.” — David Bailey
Time is the greatest asset one can own and hence it only makes sense to use it wisely. If you are someone who’s in school or college, then it is the best time for you to start learning about personal finance. The earlier you start, the more financially secure you will be in the future.
School does not teach us how to manage our money or what to do with it. People spend their lives complaining that they can’t afford stuff. Their salaries or wages are unable to make ends meet and the government takes some part of what they earn as taxes. Life is unfair blah blah.
You are going to be one of these people if you don’t learn about personal finance. So what can you do as a student with absolutely no income to achieve financial freedom? We have listed 5 sources of passive income which will help you to kickstart your financial journey.
What is Passive Income?
Passive Income is a consistent source of income where you don’t have to be actively involved as one is in a full-time job. Now it also doesn’t mean taking another part-time job along with your full-time one. It can be any source where you put in your time and efforts once and you have created a long-term stream of income.
1 Publishing a book
Writing a whole book is not an easy task and certainly requires writing skills. But what’s even more important than the writing skills are the marketing skills. If you are a good salesperson or you feel you can market your book in a way that attracts more audience then definitely write a book. Find something you are passionate about or have expertise in and share that knowledge with the rest of the world. You need to put in solid efforts once and then you can get royalty on your book for as long as it sells. The publishers take a larger chunk of profits from the book but you too will get the royalties on every copy sold.
Freelancing is not really a source of passive income but to make money you first need money. So do whatever you are good at, take a freelancing project or a paid internship and earn some bucks. There are freelancing gigs available for photographers, videographers, editors, artists, content writers, data entry gigs, teachers, educators, app developers, etc. It doesn’t matter if you earn just 1000 rupees but do not ask for money from your parents. It's best that you start from scratch and use your own money.
3 Mutual Funds
Investing your money in mutual funds is a great way to expand your wealth. It is a safer yet rewarding option for beginners. Now the money you have earned through a freelance project or an internship can be invested in mutual funds. You will need to do your research about which fund works the best for you and once you have done that research you can either put your money in a systematic investment plan(SIP) or a one-time investment. A one-time investment would require a larger amount of money. Sip on the other hand can be started from Rs 500. You can deposit a certain sum every month or every alternative month and get interest on it. It's advisable to not withdraw that amount and keep it for the long term. Time plays a key factor in SIP investments. Suppose you invest Rs 500 every month for a period of 15 years and get 12% return per annum on your investment. The total amount invested by you is Rs 90,000 and compound interest on it would be Rs 1,62,288 so your money is worth Rs 2,25,288 after 15 years.
4 Youtube Channel
You can start your own youtube channel and monetize it. Learning skills like SEO can really help you in getting your channel noticed and which in turn generates more money. You need to choose a niche and create videos on that particular niche. Identifying target audience and creating good quality content will help your channel grow.
5 Becoming an Influencer
If you have social skills or a hobby you are passionate about, then you can start branding yourself as an influencer on social media and earn money doing it. Whether you are introverted or extroverted doesn’t matter. Tons of introverts are very active on social media with thousands of followers. You can start your own book page where you talk about the books you read, or a food page, sharing pictures of delicacies on your Instagram, art account, dance account, music account, gaming account, or even lifestyle blog. The possibilities are endless. Influencers get paid sponsorships, free products, and promotions. You need to have a good following and you can build your network online.