7 Passive Income Ideas to Build Wealth from Home in 2021: Beginner’s Guide

Hi guys, In this post, I am going to share my 7 Passive Income Ideas to Build Wealth for a Beginner in 2021. I would discuss in detail how you can practically implement the ideas and earn passive income online through multiple streams. My basic idea to share idea, you will not have to work actively throughout your life but your income will continue to flow in.

What is Passive Income?

Most people have the misconception that passive income is an income source that would continue to flow even if you sit idle and you don’t have to work for your whole life once the income kicks in. But this is partially true.

Passive Income is the income stream that you generate or earn without actively working. But that doesn’t mean you do not have to work throughout your life and your income would continue to grow. 

But yes, once your income starts coming on a regular basis you just have to give 10% of the time you are putting on today to ensure your income keeps pouring on.

In the initial days, you need to work very hard to start earning. You will have to regularly upskill yourself and implement those acquired skills in your work. 

You have to work in such a way that firstly you make a handsome amount of active earnings. Once you start earning actively only then you go for converting it into a passive source of income. 

Why Do You Need a Passive Source of Income?

  • Passive Income provides multiple streams of earning potential which in turn help to achieve financial freedom. Beginners Guide to become Financially Independent.
  • If you are earning passive income on a regular basis then it saves you from the ups and downs of your life. 
  • Having a good source of passive income, you can plan your retirement early from the full-time hectic job and enjoy your life.
  • Earning regular online Passive income from home could be the best option for future housewives.
  • Even a Beginner can implement the idea and may earn regular income.

Choosing the best and evergreen passive income source with good earning potential is most important. While there are many home-based businesses you can start online and earn money but in this guide, I will share 7 universal income ideas to generate passive income because business has its own challenges.

1. Market and Sell Your Own Skills.

In my experience, the best idea to earn passive income for a complete Beginner is by monetizing your current skills. 

Friends, I am assuming that currently you are actively working for a company or own a business. So, I am sure you must have some very good skills and knowledge that your company is paying for. 

My point is that you can generate an extra source of passive income just by utilizing the same knowledge and expertise while being in your comfort zone. 

Here are some of the best ways you can monetize your existing skills-

  • Making & Selling your skills through Video Courses and generate passive income.

Firstly, you organize your skills & knowledge in a logical and systematic manner and make notes. Then reproduce the notes in interactive video forms and publish the content on some of the popular online platforms like Udemy.com, Unacademy.com, Coursera, etc. with your price tag. 

You can give some of the lectures as free to market yourself in initial days. If you have the expertise in your field and market yourself well then in the long run you are going to generate a handsome passive earning out of your courses. 

Bonus Tips: Always choose evergreen sectors or knowledge while making your own video courses. In this way, some days of hard work would continue to pay you for years.

  • Selling your e-books.

This is also one of the best ways to earn passive income online from your skills. If you are an expert in your domain then writing at least 200 pages about your field would not be very difficult. 

I would suggest you divide one topic into many sub-topics and target one Sub topic at a time. Once you have the articles about all the sub-topics ready, you can easily combine all the articles in the form of eBooks

Don’t worry about your language skills and publication house to publish your book at all. All of these can be managed easily. 

You can hire editors, proofreaders, designers, etc. from popular websites like- Upwork.com, Fivrr.com, Freelancer.in, etc for this service. 

Further, you can use the service of Kindle Direct Publishing (KDP) by Amazon to publish your book in an electronic form easily without any investment. The only criteria are that you must have in-depth knowledge of the subject to get recognition and earnings.

  • Selling your content as Audio Books

 Audio books could also be the best way to earn passive income without any investment. This is the best way for those people who are not confident in giving video lectures or don’t want to show their face. 

But I will recommend even if you are comfortable with recording a video lecture you should also try to publish your content in Audio Forms. Some of the best platforms to publish your audio books are- Audible by Amazon, iTunes, Audiobooks.com, etc. 

In my opinion, Audio Books are going to be the future of book publishing as you can see with the kind of popularity Podcasting has gained in a short time.

  • YouTube Channel- Best for Beginner’s.

YouTube has become a popular platform to earn a passive income in the world as well as India. It commands the online video content market single-handedly and became a synonym for Video Sharing. 

Just like Google knows everything about you, YouTube is the platform where there is something for everyone. So everyone should grab this opportunity and get benefits.

The best thing about YouTube is that this is not just limited to your area of expertise. You can even make content out of your hobbies like- comedy, gaming, cooking, traveling, etc. and share on the platform. 

There are unlimited opportunities to earn passive income online from YouTube. You have to work smartly and a little harder to make your recognition on YouTube. 

Once you achieve a significant base of subscribers and followers of your Channel. You can monetize your channel and earn regular passive income.

 You can check out my YouTube Channel that I have just started here.  

2. Stock Market Investment for regular Passive Income.

If you have knowledge and expertise then this could be one of the best methods of earning passive income from home. In the initial days you have to invest a lot of time and energy to gain knowledge and expertise in stock market investment. 

It is not easy if you want a higher return on investment from the stock market. But if you need just a certain amount of passive earnings from the stock market on a regular interval then it is not very difficult. 

You can start investing by opening your DEMAT and Trading Account with any of reputed brokerage houses like- Zerodha, Upstock, Angel Broking, etc. The idea is to start your investment as soon as possible to benefit from the compounding effect of money.

For example, If you invest just 10000 per month for 20 years with an expected return of 12% per annum, you get around 1 Crore after 20 years. You can use our SIP Calculator to get the basic idea of your return.

Further, if you invest 1 Crore rupees in the stock market and manage to get even 10 % return per annum, your yearly return would be 10 lakhs, and that too with your capital intact. 

Dividend return could be one of the good sources of passive income from the Stock Market. There are many stocks that pay more than 6% Dividends on an annual basis. In addition to that, your capital also keeps on appreciating in the long run.

Bonus Tips: In my opinion, you should explore this option only when you have the right expertise or a good financial planner to guide you. There is always a risk involved in Stock Market Investment.

3. Real Estate Investment.

Real estate investment could be the best source to earn passive income. There could be two cases -In the first case, you may have inherited a property like a flat or house or farmhouse or land. 

In this case, you need not invest money for acquiring the assets. You just have to refurbish the property and rent it out. You can also join a platform like –Airbnb and earn passive income from home.

In the second case, you are not lucky enough to inherit a value-driven property at a good location. In this case, you have to invest money in real estate by yourself at a prime location and then earn a passive income through rental income. 

But the real challenge would be the huge amount of investment you need to buy a property. So, you need to plan early either by saving the required amount or taking a loan. 

If you are going for a loan then you should have a perfect plan to pay the debt. Because in case of payment default, your whole life would be thrown out track.

4. Buying an Annuity Plan and earn Passive Income.

Yes, you heard it right. You can earn a regular monthly passive income from an Annuity plan. In this method, you can purchase an annuity plan from an insurance provider with your savings. And after a certain period, you get a monthly or quarterly or Half-yearly or Yearly pension till your whole life. 

Further your nominee also gets some part of the investment after your death. But you have to choose your plan very wisely. 

There are many companies that provide annuity plans like-SBI life, ICICI Prudential, HDFC Life, etc. You can choose your plan as per your requirement with the advice of your financial planner.

Bonus Tips: Start your investment in Annuity Plan as early as possible. Because the return on an annuity plan is directly proportional to the amount you invest. More you invest, the more return you would get.

For Example, If you invest 25 lakh in an annuity plan then you can earn 5% to 10% i.e. 12,500 to 25, 000 as monthly pension depending on the types of plan you choose. 

Similarly, if you invest 50 lakh, you get 25000 to 50000 as monthly pension. This is just for illustrative purposes. The actual amount of pension would vary depending on the plan you choose. 

5. Starting your own Blogs- Best for Beginner

Starting your own blog could be one of the best ideas to earn passive income online for housewives or Beginner or professionals. The best part is starting a blog is not as hard as everyone thinks. There is no technical knowledge required. Thanks to the WordPress revolution anybody can start their own blog within 15 minutes.

The real problem is not starting a blog but growing it and attracting traffic in this highly competitive environment. There is a myth that you have to be an expert in your domain to get success in the blogging field. 

But in my opinion that is partially true. You can grow your blog over time with your smart work and out-of-the-box marketing skill.

Suppose you don’t have time or knowledge then you can hire a content writer. If you are not command over language then you can use a grammar checker or proof-reading tool.

Once you start putting in hard work, you also gradually become an expert in your domain with experience. And once you start ranking and getting high traffic the money automatically flows in.

Bonus Tips: Never Start blogging with the goal of short-term earning if you have a plan to make it as a source of long-term passive income.

6. Affiliate Marketing.

Affiliate Marketing has emerged as one of the most popular ways to earn passive income for bloggers and online marketers around the world.

In Affiliate marketing, you join the affiliate program of a company or brand and you promote their product on your website or blog or any online property. If any of your visitors or followers buys something from the affiliate links then you get a certain percentage as affiliate commission. 

There are hundreds of companies and products that provide opportunities to bloggers or digital property owners to join their affiliate program and earn regular passive income. Some of the best Affiliate programs are – 

This is the most popular Affiliate marketing program by Amazon.com in the world. The program provides the platform to the bloggers, YouTubers, etc to choose from millions of products listed on the Amazon website. You can choose any product as per your domain and promote it on your website.

As you know Flipkart has emerged as a leader of online shopping in India. Just like Amazon, Flipkart also has its own affiliate programme.

  • Other Affiliates 

Commission Junction, Web Hosting Companies, etc. Nowadays If you have your own blog with good monthly traffic then almost all the companies provide facilities to join their affiliate program and earn regular passive income. 

7. Display Ads Network.

Earning from Display Ads Network is directly related to your Blog traffic or popularity of social media profiles or Channels.  If you have good and consistent monthly traffic to your website then you can also earn very good money from these Ads Networks.

Some of the popular Ads networks are- Google AdSense, Media.net, Ezoic, etc. These Ads network is basically a contextual Advertising platform having thousands of publishers. You just need to sign-up and get approval to monetize your website content and your passive income starts coming in. 

Apart from that you can also manually set contact some of the publishers and display their ads on your website and earn additional income.

Bonus Tips: In my experience, revenues from Display Ads Network are directly proportional to the amount of traffic on your website. So you need to work smartly to regularly attract good traffic to your website. 

So, guys, the above list of passive income ideas is not exhaustive as there are many explored as well as unexplored methods to earn passive income. Here, I have discussed only Seven ways to earn passive income and build wealth from home as per my opinion. 

Further, I would like to say that it is not necessary that you just follow one of the methods to earn passive income. I think we should try to have at least two sources of passive income apart from our regular salary.

The best part is almost all the ideas are Beginner’s friendly which mean even a newbie can start earning by successfully implementing the idea.

More is always good if you can manage them properly. In my view, if you have more than two sources of passive income it becomes very difficult to manage them properly. 

My Recommendation: 

You choose any two of the above methods to earn passive money as per your skill and knowledge, Put in smart work with dedication and patience and grow the idea to such an extent that even if you were slipping the money keeps pouring in. 

So, friends, I will conclude my post here as each of the ideas discussed above cannot be explained in a single post. And, the post may become very lengthy. I gave a basic overview of Beginners Guide on how to build wealth through passive income in 2021.

In the coming days if you want then I would share a detailed separate post on each of the passive income ideas. I would love to know which of the passive income generation ideas you find most useful. 

Further, if you are earning passive income from the other methods then you can also share for the benefit of our followers. 

Disclaimer: Some of the links provided in the post may contain the affiliate links and we may receive a commission if you click and purchase from our links. Further, All contents of this blog are for educational purposes only and are purely individual opinions without any specific recommendations. For more detail please read our disclaimer.

Thanks and Best of luck

Kunal Singh

5 thoughts on “7 Passive Income Ideas to Build Wealth from Home in 2021: Beginner’s Guide”

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