Passive Income

Understand how passive income can help achieve your dreams
Passive Income
4 min

Having a steady source of income is crucial for all working professionals. Whether it be through your regular job or other sources of income like passive income, a steady cash flow helps you pay the bills and save for your future. This is extremely important. Imagine you have a choice—as you are getting married, you have to take care of the finances in one of two ways: either dip into your savings or make a partial withdrawal from your employee provident fund (EPF) account through EPF Form 31. Surely, you would choose to utilise your available funds and save the provident fund (PF) for your retirement and post-retirement life.

This is one instance that demonstrates the importance of passive income for individuals and how, over time, it can be a reliable and steady source of guaranteed returns.

Passive income meaning

Any income that is earned without significant effort is referred to as passive income. For working-age professionals, passive income is an attractive option to explore as it can generate revenue without significant effort on your part. An important thing to remember is that passive income sources may require some involvement in the beginning. This can be an investment or time and effort to set up. But, once set up, these sources generate income consistently with little to no effort on your part for the long term. Typically, passive income can be derived from sources like property rentals, limited partnerships, and other investments.

Passive income is a great way to secure financial freedom to focus on your core work or business. While passive income will help you keep creditors at bay, you can dedicatedly work towards your passion. Passive income also assists your post-retirement plans as you can keep building your savings and provident fund account without worrying about cash flow.

Benefits of passive income

Passive income is a great way to help augment your efforts to achieve your financial goals. Here are some major advantages of having a passive income source:

  • Financial independence and stability - A core benefit of passive income is the stability it provides. Understandably, a significant amount of time and money often has to be dedicated to setting it up, but it is a secure way to achieve consistent returns. It provides a great financial foundation for independence and focusing on growth and development. Moreover, this source of income will support you even when you cannot work due to factors like health complications, market conditions, etc. Passive income provides you with the comfort and safety of savings even during market volatility.
  • Freedom to relocate - Passive income can help you to be free from being tied down to a single location as you can work from anywhere and have a steady income. This would enable you to explore new places, cultures, and environments and enhance your learning. Travel aside, even if you have to relocate to change jobs, passive income will cover you during the lean months.
  • Early retirement - With secure and stable passive income streams, you can plan an early retirement as you can easily sustain your lifestyle without a full-time job. Rather than conforming to societal expectations surrounding work, you can decide to retire based on your finances and preferences. In addition to retiring early, passive income also augments your ability to enjoy your retirement and live your life to the fullest.
  • Enables pursuit of passion - Finding time to explore your interests and passions is often tough once you take up a full-time job. In such a scenario, passive income can save valuable time and effort and help you channel your efforts towards pursuing your passion and enhancing your skills
  • Enhances cash flow - With passive income, you can find several different sources or streams of income that complement each other. For example, investments are a great source of passive income as they can earn secure returns like interest and dividends in the long run. Bajaj Finance FD can be a great way to earn stable passive income on your deposits. Bajaj Finance FD has the highest credit ratings and can match your needs with flexible payout options and tenure.


Passive income provides a steady stream of earnings with minimal ongoing effort. This financial independence lets you focus on what matters most – your passions, family, or career development.

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As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.