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Passive Income

Passive Income is money that is not directly tied to your time. You can literally be making money while you sleep.

There is a starting effort depending on the chosen activity, but the advantage is in the long run. So, you put in the work once and money keeps flowing for a long time. There is unlimited income potential in passive income.

There are four types of Passive Income:

  1. Make Money with Money i.e., Income from buying cash-flowing assets. Examples- investing in shares/ mutual funds/ index funds, business lending, real estate, and such stuff.
  2. Build something of Value i.e., Income by building assets. Examples- such as a digital product or website that earns advertising revenue.
  3. Income from leasing, sharing, or selling assets you own or control. Examples- leasing tangible assets, such as vehicles/ boats/ equipment/ furniture and renting your space, etc.
  4. “Reverse” passive income”: A Penny Saved is a Penny earned. Examples- saving or spending strategically such as cutting your ongoing monthly expenses, using cash back apps and credit cards, etc.

The trick to be successful in passive income is to have a plan and a genuine intention. Make sure that you know what you want. Research and choose a topic that sparks your interest. Initially, experiment with passive income sources after hours while having fun with it. And when you’ve stacked up enough to match your current source of income then think of replacing it.