How can you use your assets to earn extra income? 8 different ways to do so
From investing in dividend-yielding funds to peer-to-peer lending – there are options galore of using your assets to earn some extra bucks.
Oftentimes, salaried persons find it hard to save enough to meet their long-term financial goals. They could, therefore, resort to alternative ways to earn an extra income such as by investing in equity and fixed-income instruments.
When these options also prove to be inadequate, investors can rely on their unused assets (financial or physical) and use them to generate an extra income.
So, turning your assets into income is a crucial step towards achieving your financial goals. As a matter of fact, the Indian market offers a plethora of opportunities to generate income from their assets, be it through traditional means or via innovative methods.
Let's explore some of the effective strategies to turn your assets into income:
Rental income: One of the most common ways to generate income from assets is by renting them out. Owning residential or commercial properties and leasing them to tenants can provide a steady stream of income.
For instance, renting out an apartment or a storefront in a prime location can ensure regular rental income, which could be further boosted by annual rent increases and long-term leases.
Dividends and interest income: Investing in stocks, bonds, or fixed deposits can earn you dividends or interest payments. For example, investing in blue-chip stocks or mutual funds can provide regular dividends, while a fixed deposit in a bank can yield interest income.
Real estate investment trusts (REITs): REITs enable individuals to invest in real estate assets and earn income without directly owning and managing properties. For instance, investing in a REIT allows individuals to benefit from rental income generated by a diversified portfolio of real estate assets, such as shopping malls, hotels, or office spaces.
Royalties and licensing fees: If you own intellectual property assets, such as patents, copyrights, or trademarks, you can licence their use to others in exchange for royalties or licensing fees. For example, a musician can earn royalties from the use of their songs in movies, commercials, or streaming platforms.
Peer-to-peer lending: Invest your funds in platforms that connect borrowers with lenders, enabling you to earn interest income by lending directly to individuals or small businesses. For instance, platforms such as Faircent or LendingClub allow individuals to lend money to borrowers, earning interest on the principal amount.
E-commerce and online marketplaces: Utilise online platforms to sell products or services, turning your assets into a source of income. For instance, you can sell handmade crafts, vintage items, or offer digital services on platforms like Amazon, Etsy, or Fiverr.
Asset-backed loans: Use your assets, such as gold, property, or valuable possessions, as collateral to secure a loan. The borrowed funds can then be utilised for other income-generating opportunities. For instance, pledging gold jewellery as collateral to obtain a loan from a bank or a non-banking financial institution.
Monetising digital assets: If you own a popular blog, YouTube channel, or social media presence, you can earn income through advertising, sponsored content, or affiliate marketing. For instance, running ads on a blog or YouTube channel and earning income based on the number of views or clicks on the ads.
So, there are a numberof avenues to turn their assets into income. Whether it’s through rental income, dividends, licensing fees, online marketplaces, or other innovative methods, there are opportunities for everyone to generate income from their assets and achieve financial success.
However, it’s crucial to carefullyassess the risks, market conditions, and legal implications associated with each strategy before diving in.
Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Business NewsMoneyPersonal FinanceHow can you use your assets to earn extra income? 8 different ways to do so
First Published:21 Sep 2023, 10:33 AM IST
- Top Gainers
- Top Losers
- 52 Week High