Introduction
Passive income is money you can make on autopilot. The term “passive” refers to the fact that you don’t have to work to make it happen, as opposed to active income, which is money made by working. Passive income can be earned in a variety of ways, such as through real estate investing, long-term investing, and dividend stocks. There are many different types of passive income strategies but the one thing they all have in common is that they require an upfront investment of time or money (or both) before any revenue is generated.
So what is passive income? Passive income is money you can make on autopilot.
So what is passive income? Passive income is money you can make on autopilot. It’s not something that requires your attention or active involvement in order to generate revenue.
It’s much like the concept of residual (also called recurring) income, which is a recurring stream of income that continues over time. The difference between passive and residual income is that while both are similar, only one requires work to be actively done in order for it to keep earning more money for you.
Passive income is typically generated through investing or business activities that allow you to earn money over time without having to put any effort into it – as long as the investment or business activity continues generating revenue!
Active Income
Active income is money you make by working. It’s what most people think of when they imagine employment. This can include salary, wages, tips, and commissions. Active income is taxed as regular income and taxed at a higher rate than passive income.
Active income is used to pay living expenses such as rent or mortgage payments, food bills, and transportation costs.
Passive Income
Passive income is money that you make on autopilot. You don’t have to work all the time, but you make a profit every month. For example, imagine you own a rental property and collect rent from tenants every month. Passive income means that your tenant pays for the use of your property without any additional input from you (you only need to take care of repairs when something goes wrong).
Another example of passive income would be if your business has a product with recurring subscriptions—think Netflix or Spotify. If people keep paying their monthly membership fees, then this is considered passive income because it requires no more effort on your part after setting up the subscription system in the first place.
The most common sources of passive income are: investments (stocks/bonds), real estate rentals, royalties/rewards programs (like credit card rewards), interest-bearing accounts like CDs or savings accounts (which also provide liquidity), capital gains from selling assets such as stocks or real estate, and businesses that have recurring revenue streams like subscription services or membership fees
You don’t need to work all the time to make money. There are ways to make money without working.
You don’t need to work all the time to make money. There are ways that you can make passive income and continue on with your life as normal.
Passive Income is great because it allows you to make money while doing something else. If you’re always looking for more ways to earn more passive income, then this article is for you!
Conclusion
Conclusion: Passive Income vs Active Income? The first thing you need to do is decide how much time you want to put into your business. While there are plenty of ways to make money without working, it will require some work on your end.
If you want to learn more about how you can earn Passive Income via investing contact BIPOC Investment Group, Ltd. at [email protected]
