Top 3 Ways to Build Your Passive Income in 2021

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If you don’t find a way to make money while you sleep, you will work until you die – Warren Buffet

Everyone living on this planet earth wishes for three things: 

  1. Having more time on their hands
  2. Every day doing what they love to do and not forced to do 
  3. Have sufficient money to not worry about the future 

You for sure cannot get the above-mentioned things while doing only a job.

You may say you love your job to the core, and your company also loves you. but the reality is the following

  1. More than 22 million people lost their jobs in the first 9 months of the pandemic.
  2. If you die, for your organization, it’s just another job posting on Linkedin or other hiring portals.

Now, this doesn’t mean that we should resign from our jobs immediately. It means that we should start to have other passive incomes to offset the risks associated with a job.

Fortunately, we are living in a beautiful digital era where you can start passive income by doing what you love even while asleep 🙂

The following are three popular ways to start making passive income which if done right can also be your full-time business as well.

1. Transform your skill into an online business

What e-commerce was in 2000, knowledge commerce is in 2021.

The new norm in the world today is: Yes, learning can happen online by sitting on your couch at your home.

When the world is ready to learn, are you ready to teach?

You have a beautiful opportunity wherein to start your online school, you don’t have to take any govt permissions.

You have a beautiful opportunity wherein to start your online school, you don’t have to take any govt permissions.

Producing your knowledge into an online course can start your side hustle immediately.

You don’t need to have the technical knowledge to build your online school. There are no-code platforms like Fresh LMS where you can launch your online course in less than 60 minutes and start your passive income streams

Let’s look at the pros and cons of launching your online school.

Pros

  • No regulatory permissions from anyone: To build and launch your online school, you don’t need to take permissions from anyone
  • You are the product and its best: In the online school, your knowledge is packaged as a course by you and sold online. There is no stocking of products or warehouses are required.
  • No upfront Investment: To launch your online school, you just need a platform like Fresh LMS where you can build your courses and related sales pages and check out pages in a few clicks.
  • Earn while you sleep: By building self-paced learning courses online, anyone can buy the course online and you start earning while you sleep as well 🙂
  • Build your brand: By building your online school, you are also building your personal brand which will add a lot of value to your CV. 

Cons: Actually there are none :). You just have to productize your knowledge and start earning from it

2. Invest In The Stock Market

scale your earnings

One of the best ways by which you can make your money grow is by investing in the stock market. Over time, while the values of individual securities rise and fall regularly, the stock market continues to rise in value. Just the thought of investing in the stock market can be overwhelming for some, but it can be a fantastic way to make money if you know how to do it. Be careful, and weigh the potential risks and advantages before you dive into the stock market. Let’s look at some of its pros and cons-

Pros

  • Make Great Money, Quick: The tremendous returns one can earn on their investment in a relatively short amount of time would be one of the clear pros of investing in the stock market. You, too, will build wealth in the stock market if you play your cards correctly. It’s important to remember, though, that anything with this great possibility of reward would entail considerable risks.
  • Liquidity At Your Fingertips: The stock market helps investors quickly access capital. You can sell, purchase, and exchange within seconds as you see fit. This means you’re not going to wait months or even years to get access to your money. Instead, you can easily sell your inventory and access your money.
  • Flexibility: Stock market investing can help strengthen your entire financial portfolio, and you can distribute your funds in a variety of ways that make you financially more secure.

Cons

  • Market Volatility: In the stock market, there are winners and losers. Winning can mean a lot of money. Losing can mean it was all for nothing. You should not be risk-averse in the stock market, and you should be in a financial position to withstand swings.
  • Market Crashes: Volatility is something that investors have to deal with when trading in the stock market, with large failures in the system happening more sporadically. However, when they do happen, recovery can take a long time. Potential investors need only to look back to 2008 to see how quickly the market can crash.

3. Invest In Real Estate

scale your earnings

Another alternative investment for growing your money is to invest in real estate. If you want to invest in real estate, it is important to look at it from a variety of angles to understand not only the potential rewards but also the challenges to anticipate. Let’s look at a few-

Pros

  • Reduced Volatility: Real estate investment & the real estate market gives an enticing ROI, which is more stable because it’s less risky than investing in the volatile stock market.
  • Tax Benefits: Real estate investments include a host of advantageous tax deductions, such as mortgage interest, income tax, and operational costs, etc. Improvements to your properties are deductible, as they add to the value of your property. Also, property owners can deduct depreciation over long-holding property investments.  
  • Scope For Appreciation: In terms of the sheer number of ways that appreciation and ROI can be realized, real estate investment provides a distinct advantage. The general developments in the economy aim to raise home prices. Furthermore, the well-maintained property will realize substantial and steady appreciation with continuous updates and value-added enhancements over time.

Cons

  • Investment of Huge Capital Upfront: You have to put a lot of capital upfront into real estate. 
  • Lots Of Learning: Although you don’t have to be an expert in every aspect of the real estate contract, the mortgage process, and the management of land, it helps to get acquainted with the widely used terms and ideas. That will allow you to make informed choices and consult more knowledgeable professionals in the field.
  • Property Management: There will be a decent amount of legal red tape to maneuver your way through. Furthermore, a time-consuming and exhausting aspect of the landlord’s lifestyle can be late-night phone calls and maintenance requests.
  • Many Other Costs: Note that the cost of ownership of a property asset is not limited to the payment of a monthly mortgage. All of these add up and eat into the bottom line: premiums, property taxes, management, and maintenance. That means that between tenants, a month or two will result in substantial out-of-pocket costs that you will need to be prepared to spend.

Conclusion:

It’s never too early or too late to start your side hustle and not only add passive income but also build your brand. 

Fresh LMS is a no-code platform to create and sell courses under your own personalized online digital storefront in less than 60 minutes. Yes, you read it right 🙂

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About the author

Rahul Mehta

A geek who loves Digital Marketing and CRM. Enjoying building tools for helping businesses and marketers generate growth.

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By Rahul Mehta