It would be looking away from reality if we say that we have not tried to learn how to make Passive Income in India in the past. Are we still not learning about Passive Income Ideas each day in order to have a better lifestyle? The question is even after trying so hard, learning and improving, have we been able to succeed? If you think yes, maybe think again. Let’s face it! Most of us have not been able to optimally carve out the benefits from our existing wealth, let along savings or investments.
People plan new things in a new year, take a new hobby, try to be disciplined in what they do, try to deliver all that they have promised to other people, work on their relationships and a lot more, which is great. But such planning without realizing what led to the last year’s downfalls is futile as there is no solution to an unidentified problem. This is very evident that everyone wants to do great things, bring positive changes and do everything good and merry in this new year but have we analysed our mistakes from last year?
Instead of talking about mistakes and going through a sense of guilt and regret, we would talk about the corrections to be done in this year and only look at the future with hope and determination to change and do better. The corrections that one must do in 2021 are as follows and from here on these will be more like affirmations so that while reading you will be telling yourself all this.
- Take Necessary Actions (Not hold on to any asset which is constantly in loss)
I will not be keeping my money in any asset which is constantly incurring loss simply for the sake of my portfolio. I will take action and not be a lazy bear in switching assets because that is the right thing to do at that moment. Being lazy and simply regretting over the losses is of no use.
- Not Keep Money Idle in Bank (Savings Account)
I won’t let money lie in the savings bank account as it just does not make any sense leaving my hard earned money somewhere to de-grow. It loses value as inflation rates are higher than the meagre interest that it makes. I will look for better options for keeping the money safe and also have better returns from it.
- Make an investable list
I shall take the time to make an investable list. Instead of trying to figure each time about where I should invest, it is always easier to make a list initially (at the start of the year) and keep adding assets as and when new information about better investment opportunities comes up. A few funds with good track records, a few stocks, and some target amounts for deposits, bonds and debt funds. This will work as your research for good investments.
- Not make greedy investments in Real Estate Market
I shall not be carried away in the stories about real estate and take another home loan to buy a property I probably shall never use. I shall remind myself that there are other ways to earn from real estate than directly buying it and taking all the heavy work of renting it out and maintaining it on myself. Rental Income can be earned very easily from REITs.
- Not Enter into anything new unless I have done my good research
I shall hold back from the temptation to try entirely new things without doing a proper research. Most of the things that look very profitable and useful at the time of that particular seminar or event turns out to be a futile one and I feel like I have wasted my time and money on something very stupid. I will try not to be very experimental when it comes to my money as it might lead to some major loss and even if the loss is a small one that would haunt in the times of crisis when I would be needing my money desperately.
- Not to have a casual attitude towards my Investment
It is important to do proper research about the investment avenue you are going to invest in. Not every WhatsApp forward or idea suggested by your friend over tea and snacks is a good one and thus it should be heard but not easily considered for investing in it, definitely not without research.
- Investing in good causes and innovative ideas
India is at the centre stage of growth in the world right now despite the economic recession., hence ‘How to make Passive income in India’ isn’t a very tough question here.I shall take the time to see good causes that need money and devote serious time towards those things in order to achieve some level of inner satisfaction. I shall also try to take those ideas and causes to like minded friends. Many are willing to donate but remain wary about how the money might be used. I will help others also in doing something good and help the society to grow.
- Not let Consumption Plans become a barrier in my way to Reinvestments
I shall consider that the dire urge to spend money is harmful to my retirement life. Most of the things we have something or the other planned even before one of our bonds or FD has matured. ‘How to make Passive income in India’ It is good to consume and enjoy the money that has come to you after so many years but what also should be considered is your retirement period wherein you will be needing a large chunk to survive and enjoy. A smart way to use this money is to consume the returns and reinvest the principal amount.
These 8 mistakes if avoided can simplify the trivial question of How to make Passive income in India in 2021 the simpler way. While 2020 has been a big boon for financial assets such as stock markets, bonds, bitcoin and precious metals like gold and silver. People investing in real estate have suffered while people who only kept their money in savings were the biggest losers due to a steep fall in the interest rates and 5 banks failing. The only word of caution is to invest your money well diversified in all asset classes which is the most important mistake to avoid.
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