Recently, one of my friends, Sneha, reached out to me to understand how could she could make her money multiply on its own. A strange thought, right? She wanted to explore the idea of passive income.
Passive income is a way of augmenting your active income to generate a good corpus. On its own, it is not something that can make you wealthy. Sneha asked, “I was thinking of starting a YouTube channel or a blog. I see a lot of people doing that and earning a lot of money. Do you think it is a good idea?”
I responded, “Sure! It can work, but it depends on your liking, interests, and the amount of time you can spend in building your passive income bucket. You need to do it consistently, and at the same time, you need to handle your job or business in the right way. Your focus on that should never take a hit. Are you willing to work hard to keep that balance?”
“So, should I not go ahead with it?”
“If you have time on the weekends, go ahead and do it. Even I have my YouTube channel, I speak in various seminars, but I don’t do that to earn money. That is something I do to give back to society, as a part of my mission to build financial awareness among Indians. My focus on my business is undiluted. You are your own stock. The returns you will get by investing your time in your job or business cannot be matched by anything else.”
A safe way of earning passive income is to focus on your job or career and invest the money you earn smartly. Products like Mutual Funds, Fixed Deposits, PF/PPF, and real estate among others will generate a steady flow of income for you. Go ahead with creating alternative income streams only if you have the time and energy for it, and can do it without letting your focus on your career and primary income source get diluted. That is how you can get to a position where you can earn money while sleeping.