Passive income is money you earn without doing a lot of “active” work. Essentially, you can do most of the work ahead of time and then put in some extra effort along the way to get paid.
For example, if you create an online course, you only need to update its content to keep the money flowing.
You’ve probably heard the phrase, “Make money while you sleep.” This is the biggest draw for people to earn passive income.
You Can Create Something
That makes money even when you’re not working. Or you can make passive income investments (real estate or stocks) that allow you to earn income passively.
Active Income vs Passive Income – Which Is Best For Me?
In theory, all your sources of income are weighted Canadian Hospitals Email List similarly. But when it comes to achieving financial freedom , passive income leaves active income behind.
You see, active income is the money you are currently generating from the efforts you are doing. In order to keep making money, you need to keep working. If you quit your job, you don’t get paid. Your time is literally equal to money.
Then There Is Passive Income
An income that doesn’t require you to actively work. The money will continue to flow in year after year. If you want to design your dream life if you are financially free, you better focus on passive income.
Just remember that while you can build a passive income stream with a small investment, you’re not making any less commitment than someone else investing their time. Making passive income comparable to active income requires a lot of upfront work.
How much passive income can I earn?
You can make as much or as little passive income as CNB Directory you want. However, it’s not a rich get-quick solution. You need to invest some time, initial effort and capital to create passive income streams.
The good news is that addressing these issues early on can allow you to sit back and enjoy the financial rewards for years to come.