One of the most asked question in our blog and Instagram page is how I earn my passive income in real life. We talk a lot about passive income and I personally do believe this is an one way ticket to financial freedom. If you are really aiming to retire early, whether it’s your late twenties or mid thirties or whatever number you have selected in your head, one thing you must realize is that cash flow shouldn’t stop even if you retire.
People often confuse retirement by thinking they don’t have to work anymore. That’s not really true. Sure, you don’t have to work actively but the cash flow income in your bank should flow no matter what.
My biggest source of income is still my job. That’s where I get the big bucks from. But don’t get me wrong, I do not do the typical jobs that most people hate to do but my hobby is pretty much my job which is web designing, social media management and search engine optimization. But obviously achieving financial freedom is my main goal. That’s why I have already started some side hustles and investments.
Active income simply means if a person has to work physically in order to earn such as doing a day job and passive income means that cash flow will continue without physically working such as rental income, dividend income and so on.
In this post, I will reveal each and every income source that I currently have and will show you how I actually earn money and invest them in real life.
#1: My Real Job (Active Income)
Like I mentioned, I work as a web designer and also maintain SEO related work for my company. It’s not an Indian company but it’s a foreign one. I do get paid $1,000 per week means around $4,000 per month which is equal to nearly Rs 3 lakh per month in India.
#2: Real Estate (Passive Income)
I do own two properties in New Delhi, India and they both bring around Rs 20,500 rent per month combined. One apartment is 1 BHK, 2nd floor and other one is 3 BHK, 3rd floor. One tenant pays Rs 7,000 per month and the other one pays Rs 13,500 per month. This is a very nice way to earn some passive income but it did cost me a fortune.
#3: Affiliate Marketing (Passive Income)
I do earn $50-$100 per month from Amazon Affiliates and some other from blogging. This still brings around Rs 3,000 to Rs 6,000 per month and it doesn’t take a lot of my time. It’s like set and forget kind of technique. I write some blog post with Amazon or other products affiliate links and whenever the audience buys anything from that link, I get a small commission.
#4 : Dividends (Passive Income)
I only started investing in share market a year ago, although I have been tracking it my whole life because my father used to talk about it a lot. He is a short term trader but I do not really like that and neither have I time for that. So, my strategy is to buy and hold and keep earning dividends.
Currently, my calculation says that I would most probably earn Rs 50,000 to Rs 60,000 per year with my current investment and you can check my real time stock market dividend portfolio and dividend income in this journey.
#5: Writing (Active Income)
One of my favorite hobbies is to write. I do read and write a lot every day. It’s one of the best ways to relax my mind. But how cool is it when you get paid to do the same? I do write for some of my regular clients and currently, I do earn around Rs. 15,000 – Rs 25,000 per month from writing articles. It does not take more than 60-90 minutes per day though. It could take much less time but I do a lot of research before writing for my clients.
#6: Social Media Management (Active Income)
I do love to design graphics and also a self taught expert in social media management. I have been doing this from 2010. Although, my regular job doesn’t allow having a lot of time for this, so I only have a private client for this work right now. It pays around Rs 8,000 per but it hardly takes me 50-60 minutes per week.
And that’s all the sources of active and passive income I have. I didn’t include where I invest my money but you can check out my top investments list in this article where I do share how much I save and invest per month and how I am planning to achieve financial freedom from passive income.
However, I am young right now and I can afford to work actively a lot which I am doing. I am trying to get as many freelancing jobs as I can and trying to save more than 70% of my income. Moreover, I am also trying to invest at least 50% of that saving every month.
You can always track my investment journey through this blog and use it for your entertainment or education.
I really do hope you guys enjoy reading this article and may be you get some ideas on how to make money online.