Types of Passive Income

1. Passive income is earnings, in which a person is not involved actively. Passive income includes regular earnings from a source other than an contractor or employer. Passive income can be earned by: • Selling Photos • Rental income • Interest income • Royalty income • Pension income • Own a car wash • Dividend income • Fixed Income / Bonds • Income from capital gain • Income from franchise Business • Income from many Affiliate Marketing • Income from Amazon Affiliate Program • Income from winning of Quiz competition • Gift received from person other than relatives

2. And like all such income from any source that do not require mental and/or physical exercise. Selling Photos: From beginner to expert, lots of smart photographers increase their income by selling prints of their own, original work, both online and in person. Rental income: For real estate investors, Investing in rental properties is a great starting point. Rental properties can provide generate value from appreciation and cash flow. You enjoy the rent as passive income, once you buy a property. Interest income: Interest income is money earned by an individual or company for lending their funds, either by putting them into a deposit account in a bank or by purchasing certificates of deposits. Example: Bank Fixed Deposits, Recurring Deposits, Post Office Monthly Income Scheme Royalty income: Income received from allowing someone to use your property is Royalty income. Royalty payments for the use of patents, copyrighted works, natural resources, or franchises are most common. To generate revenue the person using the property many times does so. Royalties are normally legally unbreakable. You can earn royalty checks by selling a book to a major publishing house or selling a screenplay for a movie or television show or selling a piece of music that you've written. Authors, screenwriters, and musicians usually receive substantial royalties for their work. Pension income: A retirement account that an employer maintains to give you a fixed payout when you retire is a pension. It's a kind of defined benefit plan. Your payout

3. usually depends on how long you worked for your employer and on your salary. Not all employers offer pensions. Government organizations and some large companies usually offer a pension. Own a Car Wash: Washing cars for money is something virtually anyone can do because it does not involve complex training or skills. With a little space, a few materials, and a water supply, you can be on your way to making a little bit of extra cash. Poor people really earn good income in Car wash. Like if he / she got some how 10 cars a day minimum per 50 rupee then its 500 Rs. As he/ she got at least 50 to 100 cars at single place itself. So he/ she can make regular income. Dividend income: Stockholders are paid Dividend income out of the profits of a corporation. Dividends are obtained from a company's profits, so it is fair to assume that in most cases, dividends are generally a sign of financial health. From an investment strategy perspective, buying established companies with a history of good dividends adds stability to a portfolio. Fixed Income / Bonds: By investing in bonds, there are two ways to make money. The first is until their maturity date to hold those bonds and collect interest payments on them. Bond interest is usually paid twice a year. The second way to profit from bonds is to sell them at a price that's higher than what you pay initially. Income from capital gain: A capital gain is any profit or gain that arises from the sale of a 'capital asset’. Profits from the sale of a capital asset, such as shares of stock, or a work of art are Capital gains.

4. The cost of acquisition + house improvement cost + transfer cost is final sale price = Capital gain. Invest In A Franchise Business: A great example of passive income is investing in a Franchise Business. A passive franchise system is where revenue can be generated without an operator being there. Because a Franchise Business can serve as an additional income stream, depending on you how much time you want to invest for a passive income, it can suit most people. Income from many Affiliate Marketing: • Affiliate marketing is a simple 3-step process. • You recommend a service or product to your followers. • Your followers purchase the service or product using your affiliate link. • For the sales made using your affiliate link, you get paid a commission. Income from Amazon Affiliate Program: By signing up for Amazon affiliate program, you can get started. Then, get to work building your site. I promise, WordPress and if you put in a little time, shopify are very easy to master. You will grow even faster, with the help of the plugins I mentioned. Income from winning of Quiz competition: Any person receiving any income by way of winning from quiz competition and other games example: Bournvita Quiz Contest, Cricket will have to pay Income tax and TDS must be deducted before releasing the payment to the concerned person.

5. Gift received from person other than relatives: As per Section 56(2) of the Income Tax Act, Gift from specified relative is exempt from tax. A gift deed will have to be supported for the gift. Any income received on the gift amount will be taxable in the hands of the recipient of the gift. CONCLUSION: Passive income sometimes can be more than your active income, there are lot of people who are earning good passive income. You cannot earn Passive Income if you are not willing to do atleast one of the below. • An upfront time investment, or • An upfront monetary investment. Passive income can be earned both not only offline, but also online. Please subscribe and follow my blog: MY EXPLORER DIARIES.