How to create multiple sources of income in India

How to create multiple sources of income in India?

There are a lot of ways to create multiple sources of income. You can start with Real estate rental income, invest in high dividend stocks, active and passive Mutual funds, use the internet to create content like blog posts or YouTube videos, write a book and publish it on amazon kindle, create your own podcast. 

If you don’t find a way to make money while you sleep, you will work until you die.

Warren Buffet

Why would anyone need to have multiple sources of Income?

Most people do it for financial freedom, but you have to find your own reason. I want to achieve financial freedom because as the above quote suggests “I don’t want to work my whole life for money, So I need to find ways to make money even when I’m sleeping.” 

By diversifying your sources of income you are decreasing the risk of total dependence on one source to make money. Let’s suppose you have created 4 different sources of income and suddenly your one source stops working, you still have 3 other funnels of income coming. 

The best example of the above statement would be the COVID-19 situation, millions of people lost their 9 to 5 jobs during the pandemic, and it was their only source of income and because of that they were completely hopeless, most of the people were in debt which made the situation worse.  

There will be billions of reasons you will need more money, like rising health care costs, increasing unemployment, paying for college, for your next holiday etc… You have to decrease your dependency on money and treat money as a tool. 

Ideas to create multiple streams of income?

  • Real estate – Be it a residential space, a commercial space, a plot or even agricultural land, real estate can possibly create wealth over the long term. Aside from rental payments, you can acquire appreciation in the estimation of the property. Nonetheless, to purchase real estate, you will require beginning capital. Check out How to do Real Estate Investment in India ?

For the most recent few years, real estate costs in India have fallen, allowing you a chance to Invest at reasonable costs. In the event that you have property inherited from your predecessors, you can redo it to let out space for commercial or residential use. 

Note that you should consider costs like home loan, maintenance costs, taxes, and so forth. You might need to set the lease subsequent to considering these costs to arrive at a return on investment (RoI) that you wish to accomplish.

  1. SIP in equity funds/Dividend-paying stocks –  Let’s begin by making a corpus to invest your money. Suppose you are 25 years old and making Rs.50,000 each month subsequent to finishing school. 

You can save Rs.10,000 each month in an equity fund as you also have other responsibilities with the remaining money. Yet, getting going with Rs.10,000 each month in an equity fund SIP isn’t terrible. We assume you do this till the age of 45 years and only invest Rs. 10,000 without any increment. 

Amount invested per month in SIPThe time period of SIPAverage ROI of equity fundsRisk on investment
Rs. 10,00020 years14.50%Low to moderate risk
Total Amount Invested At age 45Wealth ratio
Rs. 24 lakhsRs. 1.41 crore5.88 times 

As the table above proposes, you have made abundance to the multiple of 5.88 times your amount invested. Yet, more significantly, you have a prepared corpus of Rs.1.41 crore accessible with you at 45 years old of age. What occurs in the event that you put this money in high dividend yield stocks? Allow us to examine the possibilities.

Stocks Dividend Yield (%)Possible Annual (Return on Investment)Monthly earnings 
SJVN8.16%Rs.11,50,560Rs.95,880 pm
Coal  India7.85%Rs.11,06,850Rs.92,238 pm
NLC India6.75%Rs.9,51,750Rs.79,313 pm

As can be seen from the above table, from the age of 45 onwards you can make a major wellspring of an additional stream of income simply by arranging and putting Rs10,000 each month in equity SIP today. 

 It is so easy to make another stream of income by investing early. Obviously, we can’t predict which stocks will give high dividend yields by then so we have considered the quality high dividend stocks now. Most importantly, this method is additionally tax efficient as you only need to pay a 10% assessment on dividends above Rs.10 lakhs every financial year.

Now, if you think achieving financial freedom at age of 45 is not that beneficial to you. By just adding a 10% annual increment in your SIP can reduce that age to 35.

  1. Blog posts/YouTube videos – It isn’t news that money can be made making videos on YouTube or writing blogs. These content creators procure income from promotions and endorsements, even on more established content. Setting up a YouTube channel or a blog takes a ton of starting dedication and difficult work. 

On the off chance that you have had the option to accomplish it, that is extraordinary, notwithstanding, you can think beyond those surges of online income, similar to Sell a course in your subject matter or interest on websites like Udemy, Skillshare and Coursera. 

It expects you to require some investment off and put efforts with the goal that your item stands out from the rest. The only way you can bring in money out of the content you produce is in the event that it is worth the viewer’s money and time.  

Aside from promoting the item/content, you will likewise have to make more astounding items/content to have the option to set up a brand name and keep scaling your income stream.

  1. Publish a Book – You can write a book on anything that interests you with great detail and can self-publish it on the Amazon Kindle platform. If you apply some digital marketing you can easily create a passive income stream with a book.

Notwithstanding, all in all, regardless of whether you were to compose a top-rated book, you can’t simply think of one book and leave it at that. 

If you want to scale your income stream, you will have to create a more excellent book or content and keep developing yourself. 

  1. Create your own Podcast – let’s start with an example if you know anything about podcasts, then you would have heard of Joe Rogan and his podcast ‘The Joe Rogan Experience’ and it was acquired by Spotify for $100 million dollars only for its exclusivity and not ownership. 

Today there are lots of tools available online which can be used to create your own podcast and there are a billion ways you can monetize your podcast.

  1. Bank Fixed Deposit and traditional government schemes – This is probably the easiest of all passive pay sources mentioned on this rundown list. The idea is basic: pick a bank/financial institution or plan that pays the highest interest rate. Yet, you cannot part with a large amount of money without first ascertaining the safety of the deposited money. 

Your safest bet would be a voluntary provident fund, which is only increasing your contribution towards your current provident fund. PF money, in any case, will be bolted till you resign or leave your place of employment for a long period.

On the off chance that you are searching for medium-term liquidity, you can see high interest-earning fixed deposits or government savings schemes. If you want to have the highest conceivable liquidity, you can settle on a savings account with a bank that pays interest higher than its peers. 

Note that tax at the rate of 10 % is deducted from interest payments on the off chance that it surpasses Rs 40,000 for each annum.


One of the benefits that accompany having multiple streams of income is that you’ll have financial stability. You don’t have to depend on one job to pay your bills as you can part your money towards savings, holiday or anything in the middle.

In the age of COVID-19, it’s important to have an emergency fund so you have cushion money to fall back on in case you’ve made redundant or lose your employment. By having one, you avoid the situation of taking out credit funds or encountering financial pressure.

Written by
Sourav Suman

Sourav Suman

Blogger, currently pursuing B.A LL.B, Investor, and Personal Finance Enthusiast...


Abhishek Shakya

Blogger, SEO expert, web developer, currently pursuing B.Tech, and an Investor...