Hey you, Before starting the article "What is passive income", I want to take a promise from you. If you are here it means you are worried about your future, your goals promise me that you will read this whole article. May be you will find the starting quite boring. But you have to stay till the end I promise you that this article will definitely change your mindset.
Before talk about passive income we must know the types of incomes and should cover some things need to know.
Types of Incomes
1. Active income
The fixed money which you recieved by performing a service to the buisness at a fixed time interval is called Active income.
Wages, tips and jobs are considered as active income source.
2. Passive income
The money which you recieved from almost no effort or little effort is called active income. Sometimes the amount is not fixed nor the time interval. Some common examples of passive income are rental propertie, limited partnership and enterprises in which one don't need to be involved.
3. Portfolio income
Portfolio income is the money you recieved from investing in assets. Dividends from stocks, interest and capital gains are also considered as portfolio income.
Why the majority of people choose active income
High's are high and low's are extremly low. Majority of people choose active income over the other income sources. There could be mainly three factors;
1. Fixed income
If you are doing a job or performing a service to any buisness or enterprise you will get a fixed amount as your salary at a fixed time interval. There is no risk of losses simply you are working for a company and you get your salary.
2. Easy income
Majority of people find it easy to earn money by working for others. Wheares in buisness you need to take risks may be you have to bear losses in beginning or may be you have to close your buisness as it doesn't perform as you think but it becomes too easy in active income to earn money.
3. You can start income from the day you are working
You can start earning money from the date you are joining in active income wheareas in passive income first you have do hardwork to build the source it takes too muct time. So many people find easy to earn money by active income sources.
What is passive income
Passive income is a source where you recieved money from almost neglible effort. Some examples of passive incomes are renting property, limited partnership, enterprises in which you are not involved but invested your money.
Passive income - The next big thing
All the rich people in the world have multiple passive income sources they did the hardwork once and that hardwork are gonna pay them for many years. They don't do anything by themselves but they made a system in which people work for them it doesn't matter they are working or not. We usually see all the rich people enjoy the trip in foreign but still their system is on working and their revenue increases whether they are on holiday or sleeping.
Lets take the example of Mark Zuckerberg he does all the hardwork in the beginning on facebook provided a service to the people to chat with each other and uploading their daily life on the facebook and he is earning money even while sleeping. The more you will use facebook the richer he will get. What he did he just made a system in which people work for him.
You can build a passive income source in every industry just you have to change your mindset.
You know what is the difference between a proffessional and an entrepreneur. A professional will get his salary until he work for the enterprise. But an entrepreneur builds a system in which he has to do a little or negligible work but that system work for him. If a proffessional got sick and can't go for work he won't get any salary but if an entrepreneur got sick, system is still working for him it doesn't affect his income. Lets take an example of sir Mukesh ambani. Is he made Jio network by himself? Or is he went to promote jio network? No absulutely not he just made a system.
You want to get rich but cannot.
As we discussed above that earning through active income is lot more easy than passive income. And parents often use to say us from childhood that if one has to survive in this world he has to do work, their work means a job. So from childhood they educate their children to do a job take a home at loan get married have 2 children. According to parents having a secure job is called settlement if you have a secured job you are settled. A very few parents who knows the power of passive income advice their children to build a passive income source.
You see rich people get richer day to day and poor people get poor everyday. Because once a person got rich he knows the formula that how to build a source that will give them income for whole life even to their children.
A book which inspired me a lot is rich dad poor dad. The book reflects that how a poor dad educate their children and how a rich dad educate their children. A poor dad usually tell their children to get educate get a degree and finally get a job wheareas a Rich dad tell their children learn how to get work from money. A poor dad tell their children while buying anything that we can't afford it but a rich dad tell their children think how to afford it. One should read this book if he want to do something that will change his life.
Get work from money instead of work for money
A middle class person work his whole life in the hope that he will get rich someday..someday...someday. But that someday never comes in his life you know why?? Because he is working for money. Wheareas a Rich person who knows the formula and secrets of generating passive and know how to increase his bank balance day by day because he get his income from money. What he does just invest his money in enterprises where he doesn't need to do anything his money does all the work for him. I am not saying that you cannot be rich by doing a job but if you are doing only job then it's impossible to get rich in your whole life. If you are making investments while doing a job you can be rich because you are building multiple income sources which a rich person does.
Victory is beyond fear
Victory is beyond fear beyond risks. If you are ready to take risks, if your goals are matter for you, if you want to live the dream life and the most important if you have courage to achieve your goals, you can build passive income source, you can build an empire, yes why not definitely you can and you will. If one cannot take risks, have fear of being lose then active income source like job is everything for them but yeah their dream will be remains dream forever.
Final say...
Passive income vs active income
We have discussed all the things above. If one have to achieve his goal he will have to build a passive income source or get his work done by money earn through money. So "what is passive income", is passive income is better than the active income??...am not gonna answer this question you will have to give the answer, comment down and tell me the answer.
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