What is passive Income? Why top 1% of rich use this method?

THERE ARE 2 TYPES OF INCOME

Active Income
Passive Income

ACTIVE INCOME

Whenever you trade in your time for money it’s called as ACTIVE Income. The reason is that you have spent your time on some work and in turn you have been rewarded with an income. The major factor here is ‘TIME’.

You only have 24 Hrs per day and active income is tied up with the amount of time you spend on that job.

Scalability: This is the most important limitation with active income as your income depends on the hours you work.

Assuming that you work 40 hrs per week,

Hourly wage: $30

40 Hrs X $30 = $1200/Week

40 Hrs X $30 X 4 = 4800/Month

The above stats clearly shows that the income is directly proportional to the hours worked ie. the more time you spend working, the more income you receive.

This is a huge limitation as you have limited hours to work and the only way you could increase your income is by getting a better pay.

PASSIVE INCOME

Whenever you DO NOT trade in your time for money it’s called as PASSIVE Income. Here minimal or no work is required to receive the income. In this case, the time spent on the work is not directly related to the income received so income could be generated even when you are sleeping. This is a great advantage and opens a lot of opportunities to gain wealth.

“If you dont find a way to make money while you sleep, you will work until you die”

– Warren Buffet

To gain wealth, you need to have multiple sources of income. Through passive income, you can generate multiple avenues such as online blogs, stock dividends, real estate rent etc.

LET’S GET STARTED AND BUILD PASSIVE INCOME!!!

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