Passive Income And How

You may think we re wordsmithing or splitting hairs but there is a difference between passive income and residual income.

Passive income and how. After all earning money without actively working for it once you clear a few hurdles is a sweet deal and a great. It s easy to look at the envato market and imagine all the dollars rolling into your account but that glosses over the level of work involved. Blogging and real estate investing are both passive income streams that take time to build up. Though many who write about it don t differentiate.

Passive income is somewhat of a holy grail for income minded individuals. Everyone wants to retire someday but it s difficult to stop working without passive income. Passive income is complicated and anyone who tells you otherwise is a charlatan. When we say passive income some people tend to think of investing because it can produce the largest results with the least amount of work.

It s basically a steady stream of recurring income that you earn while sitting on the couch. Your income will cease completely unless you have some form of passive income. Dividend paying stocks and other investments. Passive income supplements a worker s income from their job allowing them to work fewer hours stick with the same pay rate or improve their lifestyle.

Passive income semi passive income side hustles and now residual income. Every person on the planet would like to have a passive source of income. Yes there are all these wonderful upsides but there s also a lot more that goes on behind the scenes. Passive income when used as a technical term is defined as either net rental income or income from a business in which the taxpayer does not materially participate and in some cases.

Passive income is money generated from investments properties or side hustles that aim to achieve a steady flow of cash without the daily commitment of a full time job. We researched and considered other possible passive income streams like launching an amazon fulfillment and drop shipping business but it was a saturated market and it just wasn t resonating with us the way these other opportunities did.