EP 010: What is passive income, realistically?
Many people talk about passive income, but a lot of people do not completely understand what passive income is. Some may misunderstand passive income as free money or money without effort like money falls from the sky. But in fact, this is not the right way of defining and understanding passive income.
First we need to know where to draw the line between active income and passive income. And after that, we have to understand that there are two requirements that you will need upfront in order to create a source of passive income.
After you have created a source of passive income, things don’t just stop there. You will still need to maintain the source of income or else it would eventually shrink.
What you’ll discover in this episode:
- Why many people misunderstand passive income
- Where to draw the line in between active income and passive income
- Things required to create a source of passive income
- Some examples of building a source of passive income