Passive Income How To Create

Passive income typically enables your money to work for you.

Passive income how to create. We can compare it against active income where your effort is 100 correlated to your income. Still it is possible to build sources of passive income for yourself. Passive income is defined as income that requires minimal effort or perhaps even zero effort to earn. For example i took a ton of time off with my kids over the holidays since.

Generally the most common path to generating large passive income streams is to work at a primary job and use your actively earned income to buy assets that regularly generate passive income. While this strategy may not quickly result in substantial passive income it can become a portfolio that generates substantial passive income over time thanks to compounding dollar cost averaging and dividend reinvestment. In a word passive income sometimes known as residual income is cash that you earn after making an upfront financial or sweat equity investment then you sit back and watch the money roll. It s a work smarter not harder situation.

The passive part comes in because i make the video once and earn income over and over as more and more people see it.