9 Investment Habits to Develop for High Passive Income
Millennials appear to be more interested in quickly earning and saving money in the post-covid era, whereas they appeared to be less interested in saving and investing and more interested in consuming in the pre-covid era.
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In terms of financial management and earning potential, Millennials are the most privileged generation. They can now invest, save, spend, and do a variety of other things that were unthinkable only a few years ago with the click of a few buttons or in a matter of minutes that were unthinkable only a few years ago with the click of a few buttons or in a matter of minutes that were unthinkable only a few years ago. However, with each new financial benefit comes a new set of financial requirements, which change on a regular basis. Millennials’ financial needs, in particular, are rapidly changing. As a result of this, their business practices have shifted.
For example, before the commencement of the Covid-19 epidemic in March 2020, millennials in India were famous, or rather infamous, for splashing on a new-age lifestyle that entailed high expenditures. However, unlike previous generations, millennials were not afraid to spend big, even if it meant entering into debt through credit card bills or personal loans. However, as soon as the pandemic began to show its ugly colors, millennials’ financial priorities shifted quickly, resulting in job losses and salary cuts across the country.
Also Read: Passive Income: The Ultimate Guide to Financial Freedom & Master Investment Techniques
India has one of the world’s largest millennial populations, accounting for approximately 34% of the total population. Millennials have grown up with rapid technology advancements and, as a result, like the convenience of digital platforms. Even when it comes to investments and money, people increasingly prefer digitally acquired assets that fit into their fast-paced lives and objectives.
Also read: Commercial Real Estate: The Ultimate Investment Asset for Highest Passive Income
Top Habits to develop to earn higher returns on your passive income investments
Being at home during lockdowns and having easy access to trading apps has given wings to millennials’ new money-making habits, which are not limited to stock markets or Cryptocurrencies. Rather, they are gleefully investigating a slew of other possibilities. Ten new money-making habits among millennials are as follows:
Possession of fractional properties
Property fractional ownership has arisen as a new financial concept in which millennials are interested. Fractional ownership is an investment tool that is best suited for young people since it provides greater and more secure returns than commercial real estate (CRE). It provides a consistent stream of income that can supplement existing revenue significantly. Long lease contracts and rent escalation ensure a consistent supply of inflation-adjusted income, allowing them to be financially self-sufficient. It has also been found that millennials invest approximately 30% of their income in fractional assets, and this figure is rising.
Read Also: 5 important tips to earn maximum passive income from your rental investments
Day trading, stock market investing, and initial public offerings (IPOs)
Lockdowns and working from home have provided many millennials with adequate time to monitor stock market events. Day trading has become a lucrative side income option for millennials thanks to the availability of simple-to-use mobile apps.
Investing in and exchanging Cryptocurrencies
Even though Cryptocurrencies are not regulated in India, millennials are the driving force behind the adoption of these new-age digital assets in the country. In general, millennials are lured to a culture of earning passive income from their time and investments. Crypto investments are particularly popular among this age group; in fact, millennials account for more than half of our investors. One of the reasons for this increased interest is the long-term gains on crypto-assets like bitcoin and ether.
Also Read: 8 Simple Techniques To Build Your Passive Income Portfolio
Another factor is that Millennials are eager to learn about this new technology (Blockchain) and the new opportunities that it brings—decentralized finance or Defi, staking, liquidity pools, and NFTs are all new and trending options.
It is most likely the optimum time for people to demand a salary commensurate with their abilities. Rapid technological advancements are rendering college education obsolete with each passing pay period, creating a high demand for qualified workers in the labor market. Millennials have seen this potential and are upskilling themselves in any way they can. It’s no surprise that enrollment in digital upskilling and education platforms has skyrocketed.
Also Read: Master these 7 Passive Income Habits for Building Wealth in India
While millennials must spend money on upskilling, they are happy to do so to find better-paying positions in the market.
Influencing the financial habits of others
Many millennials have turned to internet platforms such as YouTube, Twitter, and LinkedIn, as well as blogging, to influence the financial habits of others. They have not only earned hundreds of thousands of regular consumers of every piece of content they have published online, but they have also made actual money in the process. It is not surprising that anybody who knows something is eager to disseminate their investment, saving, and money-making Gyan via films, articles, and even podcasts these days.
Adding value to the gig economy
Multiple internet platforms enable Millennials to supplement their regular income by making the greatest use of their skills through freelancing work. While millennials must improve their spending, saving, and long-term investing behaviors, they must also become more financially conscious. One thing they can teach us is how to maximize our earning potential. The gig economy allows today’s generation to effectively use their skills and capacities to create value.
Automating the generation of riches
Millennials are instilling a new money-making habit by automating the process of investing or wealth development! They are now doing so by setting up auto-debit for their mutual fund investments closer to the day their salary is credited. They will be able to set up triggers for automated investment throughout the month depending on transactions in their linked savings account in the future.
Also read: Fractional Ownership and Its Impact on Commercial Real Estate
Digital lending via various online platforms is one of the many new money-making opportunities for millennials. In fact, according to a recent survey, millennials dominate both digital lending and borrowing on its platform. Due to its technological prowess, simplicity of the platform, and immunity to market volatility, peer-to-peer lending is one of India’s fastest-growing financial industries. The need to constantly educate themselves on new investing options and all things digital drives today’s millennials. They understand the value of having a broad portfolio that combines a long-term investing plan with double-digit returns to generate a sizable passive income. With diminishing fixed-income yields and uncertainty in equities, they are continuously on the search for newer investing opportunities.
Digital Gold Investing
Digital gold is quickly becoming the asset of choice for millennials looking to build and safeguard wealth. Millennials seek ease of investment and higher returns, but they also seek assets that help them meet their aspirations and serve as an emergency fund.
This technologically savvy generation places a premium on time-saving applications. Because digital gold is available on your smartphone 24 hours a day, 7 days a week, millennials are drawn to the convenience and security it provides – especially in light of the pandemic.
Not only does digital gold profit from ease of purchase and sale, but the user also saves middlemen fees and resale prices. Furthermore, because digital gold allows for the purchase of tiny amounts (beginning at 1 gram), budget is not an issue for the young professional or early-stage saver.
It’s not easy to start a side business or figure out how to invest your money when you’re short on time, but the result is well worth it. The money you generate from passive income will surely put you well on your way to meeting your financial objectives and bringing you one step closer to ultimate financial freedom. Find out where you stand financially if you’re wondering how your finances currently stack up. Whatever the outcome, Assetmonk’s advisors will help you get there. Assetmonk is a WealthTech platform that provides real estate investment opportunities with IRRs ranging from 14 to 21 percent.
9 Investment Habits to Develop for High Passive Income FAQ’S:
What makes the most passive income?
Dividend-paying stocks are the ideal passive income investment. After outperforming growth stocks during the epidemic, dividend and value equities are making a comeback. Dividend stocks are often more mature corporations that have passed the rapid growth period.
What are the sources of income?
Wages and salaries, self-employment income (farm and non-farm), government transfer payments, investment income, and other income are the five components of income.
How can I make passive income in 2021?
Some of the finest ways to create passive income include rental income, affiliate marketing, flipping retail products, peer-to-peer lending, dividend stocks, fractional ownership, and so on.
A very essential part of the investment is knowing what grade you are investing in and what do you expect to earn from it. In commercial real estate, investments are generally categorized on the basis of their key qualities, characteristics, and demand. These rankings are useful in gauging the property’s position in the marketplace.
House flipping is a fruitful business for both part-time investors and full-time flippers. The idea, although new to India, is gaining wide popularity and might make one of the greatest investment ideas for the future.
Aerotropolis or the airport city is an urban development with an airport at the center and aviation-linked businesses growing and flourishing around it. The concept has attracted a lot of investors to work on its greenfield airports of Bangalore, Hyderabad, and Kochi. These are also emerging as great investment hubs and Assetmonk is bringing an investment opportunity within Hyderabad International Airport.
While some people believe that real estate investments are only for the rich as they require large sums of money, real estate can be a great option to keep your assets intact and growing. Here are the Top Reasons Why Entrepreneurs Should Consider Real Estate Investing
As the Indian real estate market shows signs of returning stability, Bangalore, Chennai, and Hyderabad have taken the lead in Commercial real estate. As Mumbai and Delhi NCR witnessed a rise in demand for residential properties.
Every investor that approaches real estate has, at some point, asked whether the real estate was the ideal choice for them. Real estate investments do have enough strength to make you a millionaire but only when approached smartly.
Here’s everything you need to know about the Goods and Services Tax regime and how it will affect you financially.
Portfolio Diversification is the practice of spreading your investments over various investment classes that have different expected risks and returns to reduce exposure to extremely harsh risks. Diversification has many positive impacts on one’s investment ✓ Reduce the impact of market volatility ✓ Great long-term investment ✓ Ensures capital security
In the world of real estate, property investment has long been a hot topic. People have shown a desire to invest huge sums of money in residential and commercial properties. However, the fact that remains unspoken is that the investment will only be effective if the purchasing method is carried out appropriately. There are various concerns that you should be aware of, even if they are not immediately apparent to you.
Internal rate of return (IRR) and return on investment (ROI) are two typical metrics for determining how well an investment has fared over time.
If you’re considering real estate investment, you’re about to embark on one of the most rewarding investment experiences of your life. Here are a few pointers to help you invest like a pro!
When it comes to meeting tax requirements, buyers must pay the applicable GST on their property purchase in addition to property taxes. Several adjustments to the GST regime aimed at the real estate sector have been introduced in recent years. To make an informed decision about investing in this industry, potential investors and homebuyers must examine the impact of GST on real estate.
Due to the complicated nature of GST, several myths are being spread in the market to fool customers. Here is what you should know.
Reasons why NRIs are moving to Indian Commercial Real Estate ✓ Growing market ✓ Urban development policies ✓ Growing demand for office spaces ✓ MNCs in India ✓ Government reforms in favor of Foreign Investors
What factors should you consider while selecting an investment tool? In reality, it all boils down to a few factors: the duration of the investment, the volatility of the investment, the risk of the investment, and the validity of the investment. We compared investments in equities, real estate, and digital assets for these factors.
Investing in commercial properties such as apartment buildings, hotels, vacation homes, resorts, and office spaces to earn high rents or income. The pandemic taught us many important lessons, but most of all, it reminded us of the importance of having multiple income sources, especially a large corpus of regular passive income to keep us afloat in case of emergencies.
Which is the better investment: rental property or REITs? ✓ Adding real estate to your investment portfolio can help you diversify, increase profits, and even hedge against inflation risk ✓ When it comes to investing in real estate, though, you have a few options. Rental property and real estate investment trusts are two of the most common real estate investing options (REITs)
Fractional property ownership, being a relatively newer topic in India, has been through a lot of speculations and questions based on the norms and regulations surrounding it.
An investment is only good enough as long as it gives high returns, in the context of real estate investments via fractional ownership, planning an exit route becomes very easy.
Fractional ownership is a relatively newer idea for Indian investors, which also makes it subject to speculation. As misconceptions breed around the topic, more and more people distance themselves from the investment class for their disadvantage.