What is passive income

[CarmineGom]

What is passive income

What is passive income? Perhaps many of us have heard the term "passive income streams" at least once. Since things are often known by their opposites, let's first define "active income."

Active income is the money you earn through your regular, contracted efforts and activity, so in your regular day job you get paid every time you provide your service or product to a customer, which means you have to be present every time you want to get paid. This is the usual method of generating income or salary.

Passive income streams now pay you regularly from a source other than a day job or contract. How to make passive income? The most common ways people tend to take advantage of passive income streams are as follows:

        Real estate rental
        Investing in the stock market
        Businesses that do not need active participation in organizational processes

When people ask how to generate passive income, it's important to remember one point: It's a misconception that passive income streams don't require work to generate money, or that it will make you rich quick... this idea is still needs some work.

For example, you may need to perform property maintenance, product updates and market analysis for your upcoming investment so that you can maintain your passive income streams.

One of the main factors in maintaining additional passive income streams is researching and developing a strategy to guide you in your business and generate income to improve your financial security.