Passive income is any income that brings you money from your minimal or no effort. There is a thinking that is as true as it sounds, passive income makes you money even when you are sleeping. Passive income is the perfect type of income many of us dreamt of having. Your bank account keeps on increasing, turning your dream of financial stability into a reality. Spend time doing what you love. It can get your early retirement plan fruitful.
The opposite of passive income is an active income. Active income is an income that brings you money from your active participation (physical presence) on work itself like going to the office and working 8 hours daily. If you think passive income sources are for the lazy ones and you believe in direct and active participation in your incoming generating process then you can check our awesome list of small business ideas in Nepal.
There are many benefits of having a passive income source. The more stream of passive income the better. We can go on and on about the benefits of passive income in Nepal. We have carefully selected some of the important benefits of having a passive income.
Passive income sources can vary depending upon where you live inside Nepal. Our list covers all of you who wanted to earn extra income whether you are inside Nepal or living abroad.
Always research before investing. Your investment decision should focus on two things. Safety of your investment capital and an adequate return. By following this, you can minimize the risks and maximize the earnings.
Our awesome list of passive income that can make you extra income in Nepal are:
Real estate is the best type of passive income source. Invest in property from your savings. If you don’t have enough savings to purchase a property, most of the banks provide real estate based loans. You can put your new property as collateral. Informal money collection like peer to peer lending can also be your another option. Nepali also get some wealth from the inheritance as we tend to earn wealth for our children.
Don’t let your hard-earned property lying waste. Think about how can you utilize it. If your property lies in a good area, you can rent it out for a good return. If your property lies far from any potential commercial opportunities, you can plant some seasonal crops that require your minimal attention. This way you can get some return. There is always a possibility of reinvesting your earned profit.
One good thing about real estate is the appreciation of price value. In Nepal, you can be sure that your property value will increase over time.
When you deposit money in financial institutions you will get a return on your investment in the form of interest. It is a very popular type of passive income in Nepal. Many people deposit their money in bank and bank provides them interests on the deposited money. If you want to earn more from your deposited money, deposit them under a fixed deposit scheme.
Till now many Nepali people don’t have a bank account. The peer to peer lending is their go-to option when they need loans (and interest rates for this loan are usually higher than a bank). Though very risky, you can earn a good return on your investment. Only lend your money to someone you trust.
Other than depositing your money in financial institutions, you can also invest in cooperative businesses. Cooperatives issue shares to the public to form their working capital. Think cooperatives like a small bank – it can collect money from individuals (especially small businesses) and provides loans to needy people or small businesses. The interest rates for both loans and deposits are higher than those of Commercial banks. Cooperatives are run by experts and are chosen through the Annual General Meeting. Besides disbursing loans, cooperatives invest in profit-making business ventures like opening schools, mart, departmental stores, real estate, shares, dairy, farming, etc. When cooperatives earn a profit, it will be either divided among the investors or reinvested to start other business ventures. You can either become a shareholder or deposit your money on cooperatives to maximize your income.
Humans are curious by nature. People want to learn new things, they want to explore places, find new ideas, and do more things. Novels (or Academic books), news, blogs, youtube videos, social media posts are the main information gathering hubs for the people nowadays.
When the book you have written gets published, the publisher gives you some percentage of sales. You can get your percentage share as long as your book keeps on selling. Your book will earn you money even if you left your writing career or may retire from active life. Similar is the case for Musicians. When your album gets published by a music company and goes to market, you are now in a position to get a reward from your composition. As long as your album (or record) keeps on selling you will get some percentage of income to keep. Yes, in both cases you have to work very hard in the initial phase up to publishing point but the reward after that outweighs the initial hardship.
Blogging is also another sure way to generate a passive income. Blogging, derived from the weblog, is a work of writing content on the website for your visitors. There are lots and lots of things upon which you can write about. You can write about the amazing experiences you felt during your vacations, your cooking skills, your photography skills, or you can even post your review on a particular subject matter like the new film on town. After you have written a few dozens of blog articles, you can start to monetize it. You can earn money through advertisements (Google Adsense is the most popular income generating source), affiliate marketing, and there is even possibility of doing local advertisements from your blogs.
If you are more of a creative person who loves to make videos rather than just sitting and typing, having a youtube channel can be a good option for you. Create creative and unique video content and upload them. Your videos can cover broader topics to target mass audiences like the latest news and updates, celebrity news, or their upcoming films. If you have a skill in a particular field like cooking, gaming, programming then you can create content on cooking, gaming videos, reviews, and tutorials. Out of many options, choose one and just get started.
Investing in stocks can be your other passive income source. Nepal Stock Exchange (NEPSE) is a sole stock exchange in Nepal facilitating buying and selling stocks through licensed brokers.
There are two different ways to invest in stocks. Active buying and selling is called Trading and is suitable for those who have an ample amount of time. Passive buying and selling are called (long-term) investing and is suitable for those who have other things to do.
Increase in share prices, annual bonus shares as well as cash dividends, occasional right shares can earn you a good amount of money. If you want to know more about Nepal’s stock market and what it does, please check out my article on Nepal Stock Market.
Besides investing directly in companies that are listed on the Nepal stock exchange, you can also invest in Mutual funds. Mutual funds are managed by a group of experts. Mutual funds collect money by issuing shares to interested investors and invest the collected money into profit-making ventures like stocks, high-interest yielding deposits, bonds, etc. In Nepal, most of the Mutual funds are issued by commercial banks’ capital companies and are at the par value of Rs. 10 per share at the time of issuing.
Nepal is a very weak country in a financial and economical sense. It has tremendous potential to grow. You can grow with it. You can choose one of my passive income sources and fully devote your time and passion into it. You will surely be successful. Which one will be your passive income generating source?