The Passive Income Secret Millionaires Know About

How to Make Your Money Work for You
person holding fan of U.S. dollars banknote


As a young banker to ‘Million Dollar plus’ account holders, I used to love visiting my clients’ offices and marvel at the magnanimous lifestyle they used to enjoy. Sometimes, when I would get the opportunity to spend a little time with them, maybe over some paperwork, I would grab the opportunity to ask them about their entrepreneurial journey. More often than not, they all had some common traits which ensured their success and here I’m sharing one such Secret with you all. The secret to their success is “They do not trade their time for money”
Now, many of you who are into corporate jobs or going to join the workforce soon, will be wondering how is that possible? Because as a professional we always get paid for our time spent on a particular assignment. Think of a Doctor, Lawyer, CA or any other profession. They get paid as long as they work. But a true entrepreneur understands that he/she should not work in his business. He should create a system that generates money. When one works, he puts his labour and efforts and time then what he receives is called ACTIVE INCOME. The problem with active income is that it is limited in nature. You only have 24 hours in a day. By increasing your capability and value you can increase your hourly rate or your salary. However, what the Multi Millionaires do is create streams of Income that do not depend on either their TIME or CONTINUOUS EFFORTS. 
Are you wondering how that is possible?
It is done with the help of Passive Income. Passive Income is the income which comes to you even when you are on a holiday in Spain or sleeping through the day!
Interesting, isn’t it? But the question is how does one create passive income streams?



person putting coin
Image credit: Sabine Peters (https://www.kredite.org/)

The simplest and most popular way is through Investing in other Businesses. I am not talking about lending your money to your college friend to start his cool E-commerce idea! No way! I am talking about investing in the top companies which form the foundation of India’s GDP. The Nifty 50 is the 50 top companies of India according to the market capitalization. They are safe companies (read Bluechips) and can give you returns which are better than fixed deposits and other debt options. You can even start a small investment of say 1000 INR per month into these companies through the Mutual Funds route. Just look for a Mutual Fund called ETF (Exchange Traded Fund) which mirrors the Nifty 50 Stocks. All you need to do is have a Pan Card and open an online investment account by submitting the requisite ID proofs. 
Once your account is set up, you have to start a SIP of your preferred amount and select the monthly date. Bingo, your money has the power to run various businesses on your behalf. Do note that this passive income has some risks associated with them. The prices of these company’s shares keep fluctuating in the short term due to various market forces. Thus, your money is earning on your behalf but you must be patient and wait for the returns to start reflecting over a long period of time, say 7- 10 years. To begin with, only allocate a very small amount of your monthly income to this asset class. Compare it to planting seeds and waiting for the fruits to bear in the long term. 

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Written by - Tanvi Goyal




Mrs Tanvi Goyal, the Founder of Wealth Aware, has more than five years specialised experience in wealth management handling million dollars plus accounts.   She had worked with various private banks such as  HSBC private bank and  Anandrathi.  

" To create a world where everyone has total control over their Financial Destiny"  is the vision of the founder and Chief Visionary Officer, Mrs Tanvi Goyal.

Wealth Aware is a holistic wealth management firm which helps in creating a personalised wealth strategy for high Networth families. It focuses on providing a mix of safety nets, growth & protection of wealth and other financial requirements. 



The Passive Income Secret Millionaires Know About The Passive Income Secret Millionaires Know About Reviewed by EMN on September 20, 2019 Rating: 5

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