How to create Passive Income in India keeping goal-planning in mind?

How to create Passive Income in india keeping goal-planning in mind?
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Planning for financial goals and knowing How to create Passive Income in India is a balancing act many are not able to do. We plan our finances based on our goals. For example if I have to buy a car next year then based on how much I can save each month I will plan how much time it is going to take me to save that much and see if I need to reduce my expenses any further or is the current amount of regular savings  sufficient. This was just a small example to make us understand how we consciously or sometimes unconsciously plan our goals and the finances for achieving that goal. 

Few of the major goals that we have which require big amount can be our children’s’ education, their wedding (there is a reason why Indian weddings are called ‘Big’ and ‘Fat’), our own travel plans or any other plans which require good amount (say a World Tour or a plan of buying a bungalow in some exotic location) and of course our Retirement Corpus.  We need to plan our finances accordingly in order to create a balance between our financial goals (like shared above) as well as our monthly income needs (pre or post-retirement).  

Passive Income does not require much of our time and efforts on a regular basis as such but making a portfolio according to our short-term and long-term goals is something that demands your time because of several steps involved in it, here are those steps:  

  1. Determination of Goal 

Humans have different kinds of goals, not all of them need money (at least not directly) to be achieved. However, most of these goals need money such as the education of your children and their wedding. The first step in the process to actually achieve these goals is to assert what all we want and make a list of it. 

  1. Calculation of the cost involved

The cost involved in achieving each goal should be calculated. This step includes doing research on the current cost of doing the same thing and then calculating the future value of the same amount by compounding it taking a reasonable rate of inflation into consideration. For example, the education cost of masters in the US could be Rs50lc today but will cost 75lc in 10 years from now.

  1. Calculation of Time-period 

The next step involves taking an estimate of exactly how many years or months do you have to arrange that much amount of money. The key to this is early-planning. Early planning reduces the burden of saving more by cutting expenses. 

  1. Choose the correct asset(assets) to put your money in 

This is the most important step of this entire process as it requires the most research, knowledge and work. Once we have all the information that we need after following the above mentioned steps, we need to decide which asset or which combination of assets is best suited for a particular goal. The factors that we keep in mind are the priority of the goals, how much amount is required, how much risk can there be in a particular asset. Example: For short term goals such as upcoming education, you might not want to invest in any risky asset such as Equity, instead you would prefer Fixed Deposits or debt funds. You might invest some amount in Index funds for longer term goals like for the purpose of wedding or buying a new house. 

  1. Take Action

It is often seen that few people very enthusiastically plan things but when it comes to actually take action, they lag behind in that. Planning is nothing without execution and vice-versa. Once a good plan is prepared, we need to take action and actually invest our wealth or savings in accordance with that. However, this is only going to help someone to initiate goal planning, and like shared before it’s a tightrope walk between Financial goal planning and monthly Passive income planning. Hence, How to create Passive Income in India keeping goal-planning in mind is a trivial topic and needs personal guidance and planning. The least one can do is invest in courses that offer the economy as well as systematic guidance to get the maximum out of one’s existing wealth and monthly disposable income. One such course is ‘MasterClass: Financial Nirvana Online’ which is an 8 week online learning and hand-holding program (by Arpit Arora himself). This is for those people looking to live a life completely free of money worries and enjoy their life by achieving family financial goals as well as creating monthly passive income for their expenses on the side. 

To learn about how to make passive Income in more details, attend our FREE webinar, click here to register.