Here is my definition of passive income.
So what is passive income?
Passive income is income that still comes in even when you’re not working. Meaning it is income you receive from past work or investing.
What is the difference between passive income and linear income?
Linear income is where you trade your time for a specific dollar amount, for instance, a JOB. You get paid $15.00 an hour you can’t make more. Some jobs have commissions, and you might be able to earn more, but there is still a limit to the amount. Typically this is a sales job. You sell a product and make a commission, but you only have so many hours in a day that you can sell. Time is your Achilles heel here limiting your income, making it linear income.
Linear income = Trading Dollars for Hours
Jim Rohn once said: “I am working full-time on my job and part-time on my fortune.”
Time is finite. Once it’s gone, it’s gone for good!
Passive income is unlimited if you figure out a way to get aboard the bandwagon. Passive income is the income you earn from working being done in the past.
Passive income is not easy but can be done in several ways.
Passive Income Definition:
“Passive income is money earned from a venture that has little or no ongoing effort involved.”
Next question most people ask is:
What are the ways I can earn passive income?
Here are 10 great ways to earn passive income:
- Write a blog – Affiliate Marketing
- Create Youtube Videos
- Direct Marketing also is known as Network Marketing or MLM (Multi-Level Marketing)
- Investing in great dividend stocks
- Real Estate
- REIT – Real Estate Investment Trust
- Write a book
- Write or sing a song
- Design a product and earn royalties
Passive income can be earned in many ways. Some ways cost more money, some cost time, and some you have to have a talent for like song creation or signing.
Either way, multiple streams of income is the way to financial freedom. As many people learned here in 2020 from the Covid-19 pandemic, only having one source of income is extremely risky! People call investing risky, but spending all your time in a job earning someone else passive income is the most dangerous thing you can do.
In fact, before the Covid-19 Pandemic and all the other issues this world has, I learned the hard way.
I had a JOB with a major Telecom company for 13 years. Each year they would scare everyone that layoffs were coming. I thought to myself no way could it be me I showed u to work, I worked hard and was even the top of many of the departments I was in.
None of that mattered—people less qualified than me and who would go out on lunch to get high kept their jobs.
At that moment, I learned you have to watch out for yourself. That no matter how well you did or who you knew, the only thing that was going to save you was yourself.
Trust me when I say you need multiple streams of income that are passive income related as none of us have enough time to build substantial financial freedom.
If anything you retain from this article, you need to know is Passive Income is where you want to be.
My Passive Income Definition Is:
It is the freedom of living on the beach or where ever your relaxing spot is.