Passive Income Definition

Passive Income Definition

Let us today discuss something about the Passive Income. Many of you may never heard about the passive income and how it works while many of you may have heard about the passive income but don’t know that what exactly it is?

Definition & Explanation: -

There are basically 2 types of Income streams in this world. One is the Active Income & the other is the passive income. Active Income is one to earn which you have to work hard in the economy. And if you stop working, you will loose that entire income stream. You have to work hard until you need the active income. The Best Example of the Active Income is the job Income. You have to go to your work place to do a job to get a paycheck at the end of the month and if you stop working or fired from your job, you will loose this Income stream.

Now, Passive Income is something to develop which you have to work hard at once. And once you do that hard work, That’s it. Your job is over. That Income will keep flowing into your bank accounts for the rest of your life weather you work, sleep, travel the world or even if you die.

Say for Example – Books, Music & Movies Royalties. Royalties are the best example of the passive Income. Robert Kiyosaki, the New York Times Best selling author of the Rich Dad Series of Books work hard at once only to write down a great book. Once the book is created, his job is over. He will make money even while he sleep without any further efforts. This is because people will never stop consuming his books.

Another Examples of Passive Income are,

- Rental Income
- Interest Income
- Dividend Income
- Online Income (Blogs, Websites, Affiliates Marketing…etc..)
- Royalties
- Network Marketing
- Business Income…etc…

In all of the above cases, you have to work hard at once only to develop that passive income stream. Once you do your hard work, your job is over.

After the Birth of the Internet, the new passive income stream has been generated in this world and that Income stream is the Online Income stream. You take the Example of this Blog. This Blog is my Online Asset cum Internet Business. I have to work hard at once only to write Information rich articles. Once I do my hard work, my job is over. This money will keep flowing in my bank accounts even if I stop Blogging today.

So What I advise to young generation is that, start building your own Passive Income stream as early as possible in your life. Because this is the only way to become financially free and retire early…!!!