CAN YOU SURVIVE ON ONE SOURCE OF INCOME?

 We have always heard of having multiple sources of income along with the primary one. But Why? Have you ever thought of that? Because in India we have mostly seen that a single earning person is in the family and all the expenses are still covered. Is the same thing possible today? Can you survive?

In today's world, everything is getting increasingly expensive and it is difficult to maintain the lifestyle we want. Everyone is facing problems with purchasing power and getting disturbed by increasing global inflation. So here everyone wants to upgrade their status and standard of living but does not know where to start with it. In today's blog, we will be discussing generating multiple sources of income and their importance.

Now many of us have the question in our mind, What do you mean by one source of income? Everybody does a job/business and earns money. Right?

But but but... Not everyone relies on only a single source of income, there are so many smart people who have multiple sources of income. Now the mind  starts thinking and you are surely thinking, "Okay, what are the other sources of income then?"

The answer is there are different types of incomes that have been classified into different categories and we are fortunately going to discuss them today some can blow your mind as well!

There are basically two types of income we earn.  They are Active Income and Passive Income.

So, let's understand these points. You have already got the hint by these two words but let's go a bit deep into this.

1. Active Income - The income which is primarily earned by the individual but investing most of the time, skill, or expertise into the job or business is called Active Income.

This includes your salary, commission, tips, etc.

This is the point of the whole blog. Most of the Indian Population is relying on Active income only i.e Jobs or Business and this is what being somewhere difficult to survive and maintain the desired lifestyle in the country. As we all want to travel the world and retire early but to do this we cannot accomplish a single source of income. THE HARSH BITTER TRUTH!

2. Passive Income -  The income that is earned by any individual by investing some amount of money and not trading any time or services (by owning any assets) is called Passive Income. In short, it is the money that you make without any hard work and while you are sleeping.

Now, how one can start earning passive income? How to get started? 

So here are some options to start your passive income. 

a) Buy Stocks - Buying stocks requires capital. But once you buy the stock you have ownership of the particular company and you don't have to go and work there, instead the company will work for you. And the profits earned by the company will be distributed among its shareholders. 

You can earn here in the following ways

1. Price Appreciation - When the profits and performance of the company increase, the value of the company increases and hence the price of the Share will also increase.

2. Dividend - When the company earns profits, it issues a dividend. That is distributed among the shareholder. (Note- It is not necessary that you will receive a Dividend every quarter, or year. It varies from company to company)

3. Bonus Shares - Sometimes company issues the bonus shares among the shareholders in some ratios i.e. 1:2 (1 existing share will receive 2 more shares). This helps you increase the value of your portfolio without any capital investment and when the price increases, the value increases.

Note - There are some risks involved in Stock Market, so please do your own research and invest accordingly. We are not responsible for any financial loss.

b) Writing Ebooks - Ebooks are popular now. You have to work hard once and publish it online on different websites. Once you start getting responses you will be getting income without worrying about it.

c) Rental Income - Some of us own a house and some of us pay the rent. The rent we are paying to the landlord is their passive income because they don't have to work on it every day. Rental income does not restrict to residential but Commercial Properties like shops as well. 

We know this requires a huge investment, but what if I say you can start with 500 Rs. as well? You can buy REITs (Real Estate Investment Trusts) that are available on Apps like Angel One. 

d) Content Creation - Content Creation is one of the most earning income sources. You can earn money by regularly uploading the videos or writing the content and you will be getting paid for every advertisement.

Now the reason for having a passive income is because things are getting expensive rapidly and if there is a single earning person in the house then it will be very difficult to survive. But if one is having an additional source of income one gets more benefits in every monetary term.

If you are first time reading this site, allow me to introduce myself. My name is Akash, and I'm the founder of Financial Talks with Sky. I discuss a variety of topics, including personal finance, the stock market, and much more. Follow Financial Talks with Sky to learn more about finances and stock markets.

I hope this blog was informative to you. You can follow and connect with us on LinkedIn and Instagram.