Creating passive income has become easier with technology and something more and more people are striving for. But there seems to be a bit of confusion when it comes to what exactly passive income is. Let’s take a look at the definition of passive income and some examples of it.
Passive income is simply earnings derived from activities in which you are not actively involved. Active income is what you know and where you get paid for doing somethings actively, and the more you do/work the more you get paid. A normal hourly wage could be an example of this. With passive income the goal is to have a steady cash flow that rolls into your bank account while you sleep, eat and whatever. This could be earnings from rental properties, or dividends and interests paid regularly from the assets you have in your portfolio.
Related Article: How To Earn Passive Income – 7 Popular Ways To Do It
Here are 10 examples of typical passive income sources:
- Rental Properties
- Divindend and interest income
- High-yield Accounts
- Affiliate Marketing
- Lead generating websites
- Drop-shipping websites with automated processing
- Business you own, but got someone to run for you
- Renting stuff out
- Vending Machine business
Obviously it takes some time to successfully create a passive source of income, b