What is Passive Income?
What is passive income? Passive income according to investopedia is “Earnings an individual derives from a rental property, limited partnership or other enterprise in which he or she is not actively involved. As with non-passive income, passive income is usually taxable; however it is often treated differently by the Internal Revenue Service (IRS).” That is a really rigid way to sum up passive income. But it is on the money.
Passive income is income you recieve even when you don’t need to sweat and labor over. My easy definition.
There are a lot of passive income generators. One is a blog or website, although sometimes blogs or websites are sometimes not considered passive income but it really is you work hard once and then it keeps bringing in cash. That is passive. Although not the only way to make a passive income.
Real estate rentals if you have some one managing it. cause then you aren’t doing anything really but owning it to make an income.
Dividends from stocks. You make that no matter what although you can lose your shirt in the same stock so this may not be it.
Credit Card arbitrage. What is credit card arbitrage? Well take your credit cards that may not have a APR for 12 months. You cash advance it then put your money in a high interest CD. Make money for nothing. After the year pay the card and its done.
Writing a book. You write it once then you sell it and keep making money. Ebooks are great for passive income. Write it and profit.
Good luck in your passive income journey.
