What is Passive Income?
Growing up with a father who owned his own business and getting to know his friends and colleagues, I came to realize a simple truth. People who become financially independent, own their own businesses.
And, not just any business, they all had businesses that made money even if they were not there. They could be out of town, or on vacation and their If they were sick or on vacation their business still made money, in business, we call this PASSIVE INCOME.
Passive Income is passive. Meaning, you do not have to be actively engaged, it runs on its own.
There is a lot of upfront work to get it going, along with some regular maintenance, but once going, it runs on its own. It is like the author who spends months writing a book and then when its picked up by a publisher, they get royalty checks from then on.
If you can set it up, Passive income is a pretty slick. True financial freedom is usually only achieved by those who figure out how to do it.
You can never be laid off, sick or injured. An example of passive income would be when someone has employees earning money for them or a website.
Money is made two ways online, advertising or selling products. With technology, both can be turned into passive forms of income. A website can be a great way to generate Passive Income.
And once you have a large following, this is when your passive income really starts to grow, so when you are spending time with the family, on vacation or just sick in bed, youre making money!
Comment by Parshant on 12 July 2009:
Passive Income has become necessity these days. I would say it as pension for whole life. I thing everyone should thing of alternate source of Income these days. However Internet has made this world as famous place for making online income.