We always wish that we had some extra money to do something with it. But to tell you from our personal experience that when we have such money we get confused about what to do with it. So, friends, we won’t be confused anymore as WealthDrift brings you the top 5 things that you can do if you have under 1 lakh rupees.
1. Investment: The first thought that will come (Passive income source)
a. NPS – National Pension Scheme is a long-term retirement plan one can invest in. The return that you can expect is around 8-10%. Although, one cannot withdraw the accumulated fund before the age of 60. After you turn 60, you can withdraw 60% of the amount collected which will be tax-free. The remaining 40% you will receive as your pension. This monthly pension is fully taxable under your income from other sources. When you invest in NPS you get a tax benefit up to INR 50,000/- in addition to the INR 1.5 lakhs tax rebate. So if you invest INR 50,000/- and your income falls under 20% slab then you directly save INR 10,000/- on taxes.
b. PPF – Public provident fund scheme is one of the most reliable and safest investment options. It is mainly attractive due to its high but stable returns. It is also not linked to the market and is mandated by the government making it an investment with stable returns. One can open a PPF account with many banks. The lock-in-period of a PPF account is 15 years. Therefore, this investment is not a liquid investment. You can choose it if you want to invest in the long term.
You can invest a minimum of INR 500/- to a maximum of INR 1,50,000/- annually in a PPF account. The current interest rate for a PPF account is 7.1%. One more benefit is that the total interest accrued on a PPF account is exempted from any tax calculations. One can withdraw 50% of the total balance in one transaction each financial year. But this you can do only after 5 yrs of opening the PPF account.
c. Mutual Funds – A mutual fund is an investment option in which many investors pool in money to collect a big amount. The Asset Management Company manages the collected amount. Here, you don’t need to think about which stocks to buy and you don’t have to study the finances of various companies. The fund manager does all these studies. The investment is safe because the funds are invested in a diversified manner. These funds are subjected to market risk but they still can be considered safe in long term.
You can also read our topic on ‘5 Safest Investments Options you can go for’. Click here to read
2. Take Courses
The time which we are getting right now will not return in our lifetime. We now have the time to up-skill ourselves. And this is the right time to do it. Because after Covid-19 the job scenario in the market has changed. The competition has grown and the demand for a skilled and competent workforce has increased.
Now you will say that there is enough material on free platforms to upgrade skills. But to tell you from our personal experience that paid courses provide you a complete package that you need for that particular subject. You also get support during the course i.e. Doubts clearing sessions.
You can also go for an Executive MBA or any technical course in your field of expertise. You can look for various courses on Udemy as well. They have very good courses with in-depth knowledge and they also provide certificates for the courses you complete.
You can also refer to our articles on lessons we got from books to enhance our personal finance knowledge. Click here to read
3. Online Dukaan (Shop) (Active income source)
Opening your shop used to require a huge amount of money. But now it is just a click away. You require only two things. An app that allows you to set up your online shop and the stock of material you want to sell. There are a few platforms that allow you to set up your online shop.
For example WhatsApp business, Dukaan app, Amazon business. This decreases your manpower requirements and increases your reach while you are sitting at your home. Your investment is just the stock you want to sell. Lower set up and running cost is the benefit you can get at the starting of your business. You even get access to good logistics from them. There are no time restrictions and the benefits go on. So this is one option you can definitely go for.
4. Earn through YouTube or Blogging (Active income source)
You can also go for earning through YouTube or Blogging. You have to discover what you are good at and teach it to the world out there. For example, if you know how to play guitar then you can purchase all the lighting and musical instruments that you require to make a good video and then post it on YouTube. You can also enhance your guitar skills through some courses you can purchase.
And, if you think you have knowledge on some subject that you can impart to the public then you can blog about it. All you have to do is to purchase a complete blogging course to learn how to blog. After then you learn blogging, purchase a domain name and hosting for your blogging website which will bring money into your pocket.
Both these things can be done under 1 lakh rupees.
5. Renting out (Passive income source)
By renting out you can generate a passive source of income for yourself. You can buy a bike and rent it out in Rapido or another bike service platform and earn monthly rent on it. You can also use your 1 lakh rupees as a down payment for a 5 seater basic car and rent it out in Ola or Uber. Use the monthly income for paying the EMI, the driver salary, petrol expenses, whatever is left as the balance is your profit.
There are some other platforms through which you can rent commodities like gadgets or even furniture. But these are not very popular right now but they are gaining a hold in the market slowly now.
So, fellas, these are the five (5) things you can do with 1 lakh rupees or less that can generate your additional income.
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