Passive Income



They say a typical millionaire has around 7 sources of income. This is my attempt at generating passive income from 7 different sources. I am presently at 5 sources of passive income and will be trying to add 2 more. Thanks to Passive Canadian Income for the inspiration.


Side hustles
Side hustles are my primary source of passive income. I generate side hustles income through credit card (cash back), Swagbucks, TopCashBack and Raise. This is not really a passive income as I need to put in additional effort to generate the cash flow.

Dividends (Taxable)
Dividends are another source of passive income. Since, I invest in indexed ETFs this income is truly passive. In the long run I would like dividend income to be a major part of my passive income stream.

Dividends (IRA)
I opened my IRA in 2018 and as such it is a late entrant to my passive income stream. I categorize these dividends as a separate income stream as I would have access to it at 59.5. I don’t have any plans for evolving this income stream yet.

Vitality
Please check out power of vitality. I get points for my gym visits (each point comes out to be $0.01). I think of it as a side hustle which generates money and keeps me fit. Tracking it as a separate source of income keeps me motivated to maximize and thus ensuring I exercise regularly.

Options Income
One advantage of holding long positions is writing covered calls. It’s a relatively new strategy that I have adopted to increase the yield of my holdings.

4 comments:

  1. haha nice graph geek, its great to be so diversified.

    Your side hustle seems to be killing it.

    keep it up
    cheers

    ReplyDelete
    Replies
    1. Thanks PCI. Your blog was my source of inspiration for diversified sources of income.

      Delete
    2. just saw this now. Thanks alot man! Glad to help and share my thoughts. Fantastic to hear, makes me feel good.

      keep it up and thanks again

      Delete
  2. From our childhood we are learning that for earning money we have to do work hard. But there is two type of income.
    1. Active income
    2. Passive income
    Active Income
    Job , self employed, business.

    Passive Income
    Rental income, Royality, Internet Business, Passive business system.Investment Service in Patna is about buying or creating assets which generates income and cash flow.

    ReplyDelete