Boost Your Passive Income: 31 Simple and Exciting Ways

 

If you want to increase the passive income, follow following steps

1. Not to Emphasize Investment Focus Over Diversification

More and more diversification can low your net worth because diversification is good to secure from loss but it is bad for winning the good performance of invested money. If you will focus on your investment, you will increase your passive income.

2. Engage in Share Market Investment instead Mutual Funds 

To send money only in mutual fund is also no so good because you will unable to check whether your fund manager is working good or not. So, invest yourself in share market for increasing your passive income.

3. The Cost of Financial Freedom

Increasing passive income is not easy because it fully depends on high level of your net worth where you are financial free but financial freedom has big cost. This cost of your sacrifice, your learning mindset and burining desire of success.

4. Avoid Taking Loans for Passive Income Growth

 Loan is your killer for increasing of your passive income. Education loan, home loan, car loan and credit card loan kill your saving and investment plan and no rest money for investment means no scope of passive income. So, never take loan if you want to increase your passive income

5. The Role of Financial Intelligence

With Financial intelligence, you can increase your passive income because it will teach you increasing income is not the source of financial freedom but increasing passive income is the source of financial freedom

6. Your Personal Home as a Liability

Your personal home is your liability if you spend on it more and more, it will not give any passive income but it will decrease your saving fund for investment on the property which gives you passive income in the form of rent.

7. Avoid Excessive Spending and Liabilities

Every time, you will increase your salary income, it will increase your tax expenses and interest expenses automatically. Because you think, you got big salary , you can buy anything. So, you  buy excess and useless things which got big depreciation. You start to buy with credit card and with buy now and pay later scheme and with big salary, you will become poor with more burden of liabilities.

8. Transfer from self Employed to Business

 Self employed person also can not increase the passive income because he does all works

he is computer operator of his business, he is telephone operator of his business, he is seller, producer, hr manager. When he tried to become master in all, he is actually decreasing his performance and focus and with this, he can only earn what can a self employed earned and no time to learn how to invest better, how to take work from employees and grow business for increasing passive income. So, for increasing your passive income you have to come out of self employed business and salary income thinking

9. Active Income: Spending vs. Investing

Suppose, you get a new active income, active income means an income you will get when you will do the work. So, after getting active income, you have two option

One is spending 

it will take money from your pocket and gives small time pleasure

One is Investing 

It will take money from your pocket but it will go to your asset side of balance sheet and it will increase your assets which will help to increase your passive income. More invest the money means more dividend, more rent, more interest, you will get and you need not do work for this.

10. Remember Passive Income Increasing Formula

More Income + More Saving + Less spending + More Saving + More Investment = More Passive Income 

11. Ego as Barriers

Showing ego through big house, big car, big lifestyle are the big barrier to increase passive income because for getting big house, big car and big lifestyle, you capture in long term debt and you have to pay its interest which decreases your active income and you will unable to invest in the assets which gives you the passive income.

12.Capitalizing on Market Crashes as an Investor

 It is big secret that pure investor gets big assets at cheap price when market crash when non investor sells their asset at cheap rates.

13. Secure Your Future by Investing Wisely

When your boss sell your company and new owner wants to decrease their money on HR, you have to get out from office. So, today you have job, stop useless expenses and invest your money wisely. 

14. Learning from Mistakes to Boost Passive Income

 Mistakes are good teacher. If during buying the assets, you got the mistake, learn from it because it will become you expert in buying of assets and if you are expert, you buy large number of assets at discount or under value and it will boost your passive income.

15. Becoming a Business Leader for Passive Cash Flow

Be leader in your business instead manager. With this, you can generate only great leader who will lead your business and this business will give you passive cash inflow.

16. Leveraging People and Investments for Passive Income

 Self employed can not increase his passive income if he only depends on self job and if he tries to make business, he needs to spend every field where he is not expert and result is low performance. If self employed has to increase his passive income, he has to leverage the people through more employment and more invest his money.

17. Focus on Your Own Financial Goals, Not Others' Opinions

Never think what people thinks about you. They think you have small home, small car, small life style. Never waste your time about other's thinking. Think what you think about them. Think whether they are holding assets or liabilities. If they hold the assets, try to connect with them. If they hold the liabilities, try to disconnect with them. 

18. Understanding the Different Approaches to Income

Try to shift from job and self employed to business or investment because in business and investment, there is big chance of increasing passive income.

Learn its Term 

Employee (E) = employee has focus on the money security and unable to take risk of money.

Self- Employed (S) = Self- Employed has focus on the completeness or to become perfect in everything which is impossible. 

Business (B) = Business has focus on the management of money risk and be smart

Investor (I) = Investor has the focus to that business which is better money risk management.

19. Avoiding Debt Traps and High-Depreciation Purchases

Never focus on the buy now and pay later, buy at zero % interest, buy at cheap EMI. With this,you will buy only the toys which has the depreciation high and when there is no asset value, you will not get the passive income. So, never capture in this and never take such loan

20. Leveraging Investments for Increased Passive Income

Bank are so smart. What you deposit money in the bank in FD of 7%, they gives it on loan of 10% interest. Money works for him and gives him 3% of every new deposit. So, you have do leverage of money. Following investment gives this leverage

Investment in Real estate

Investment in Gold

Investment in MF

Investment in Stock

Investment in Own Business

I am not against to save money in bank but when it is enough to buy real estate, withdraw and invest in real estate.

21.Reinvesting Past Income for Compound Growth

 If you want to increase your passive income, you have to re-invest your past active and passive income both because you have to increase the base of your investment and it will be available for compounding.

22. Seizing Opportunities During Crisis

If you learn to use other's money and time for better way, your passive income will increase 100 times

Crisis time is best time to invest in the business. If you will invest at the time of crisis, you will get big reward.

23. Analyzing Financial Health for Value Investments

Instead seeing market value of any investment, if you see the financial health of your asset, you will buy a good asset at cheap rate which give you high passive income in the form of appreciation.

24. Assessing P/E Ratios and Cap Rates for Investments

P/E of stock and cap rate of real estate is very important to know and compare with other stock and real estate for checking under value or over valued asset.

25. Distinguishing Assets from Liabilities

Remember, assets are those which brings money in my pocket, liabilities are those which takes money from my pocket.So, you have to invest more and more those assets which brings money in your pocket instead invest in liabilities which took money from your pocket.

26.Evaluating Investment in Personal Housing

 Your investment in your own house is buying the liability if you do not use it as for your business. Because every year, you repair it, clean it and pay the bill of its maintenance, with all these money you can buy one more house which you can give on rent.

27. The Impact of Debt on Passive Income

If you have more debt, it means, you are more unable to increase your passive income if other has take debt from you after giving security, you are more passive income in the form of interest. 

28. Avoiding Financial Ignorance and Exploitation

 This world kills the poor by making them more poorer. They kill financial ignorant because they gave offer to buy liabilities. If you allow the world, they will get your time, work, real estate, life, confidence and your self confidence.

29. Buying Assets at Cheap Prices for Increased Passive Income

Always passive income will increase at the time of buying cheap assets instead selling it.

30. Seeking Advice from the Right Sources

Everytime, you have to careful from whom you get the opinion or advice, if you get advice from employee or self employee regarding investment, they will always give you wrong advice which will decrease your passive income long run or you will unable to increase your passive income because their passive income is not huge.

Ask employee who much is your salary, he will say with confidence Rs. 50,000 , I am earning from job as salary but if you ask how much you are earning from Dividend or rent or any other part time business, they say just Rs. 500 or Rs. 1000. This is painful truth.So, their mindset you can learn from this and never try to get the advice to increase passive income from them.

31.The Importance of Passive Income Mindset

 Remember employee work for a system. Self employed is system. Business makes the system and creator of system and investor invest on the system. If you are system or work for system, you never increase your passive income because you have no time to think about passive income

you will cry

I AM DELAY For GOING on the DUTY

BOSS will cry me today also, I AM LATE

I have no time to learn to increase passive income