Unlocking Financial Freedom

 Apart from Salary, What should be the other sources of Income?



There are two types of income that everybody should have. One is Active Income and the other is Passive Income.

1. Active Income



Active Income can be defined as the income you earn by participating in any specific job or business. It is generally associated with arrangements where you receive wages or salary for the work done by you in exchange for your time and effort. Active Income can also be defined as the main source of income for any individual. Some examples of Active Income sources are-

  • Wages and salaries

  • Income from the business profession

  • Commission and Bonuses

  • Hourly Work

  • Active Investment

2. Passive Income



Passive Incomes are those incomes that you earn regularly by giving little or no effort. These are those incomes that pay you even after you are not actively working on it. Passive income can also be called a side income. In today's world, it is not sufficient to fulfill your needs by depending on the only source of income, you need to generate other types of income too. Passive income gives you the opportunity to get rid of your financial circumstances. 

Passive Income can also be defined as those income that is derived from investments, assets, or businesses that generate cash flow on an ongoing basis. Some examples of Passive Income are -


  1. Real-Estate



Real estate is one of the best sources to earn a Passive Income. You can easily generate income by renting your unoccupied property which can be any rental home, apartment, or commercial building. Renting a property has many advantages like you can earn money on a monthly basis, and can keep your property well-maintained through rent-holders, tenant screening, long-term appreciation, etc.

You can have many types of property like land, buildings, etc and every property will give different types of cash flow.


  1. Share Market



You can start investing in the stock market which could give you a good cash flow. It gives you many types of investing opportunities which should be your Passive Source of Income and will allow you to have financial freedom. 

You can invest in many categories like mutual funds, Long-term investments, crypto-currency, etc. However, you need to have a good knowledge of the stock market before investing in it, but you can definitely earn a good income by trading, dividends, and IPOs.

If you are not having a good knowledge of the stock market, you can go on investing in Mutual-funds in the form of SIPs (Systematic Investment Plans). Where you don’t need to have too much knowledge of the share market and you can purchase any plan according to your interest.


  1. Affiliate Marketing



Generating an income through affiliate marketing can pay you good money. In affiliate marketing, you need to have a good social presence. It is a performance-based strategy where individual or businesses pays you a commission on every sale or action generated through their referrals.

It is the best way to generate passive income which gives you the opportunity to earn while you are not actively working. As well as you can earn while sleeping. However, you can participate in affiliate programs where you have to promote any company’s product or services through various channels such as social media, blogs, email marketing, etc.


  1. Online Store



An online store is also known as an e-commerce store. It is a digital platform where you can sell your products or services to customers over the Internet. Online stores allow the seller to showcase their products, whereas a customer can browse, select and purchase any specific product.

If you have any manufacturing unit or can create any product by yourself, then you can definitely showcase your products online and can sell them throughout the Internet. It will help you generate a passive source of income and will also give you financial freedom.


  1. Teaching And Consultancy



Teaching and Consultancy both are two different profession that involves sharing knowledge  and guidance. You can generate an income by providing knowledge to the needy ones and can earn income by providing guidance to them. The best way to provide teaching service is to create any educational content and share it within the Internet. Whereas Consultancy involves providing expert advices and solution to the clients seeking assistance in any specific area of expertise.

However, you can generate a good income by providing any of the specific service. It will help you earn in your free time.


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