Infographic: How to Choose a Passive Income Stream
Passive income is earnings derived from an enterprise in which a person is not actively involved. It includes anything from blogging to property management to creating a mobile app. It does not include salary, portfolio or investment income. The effort is front-loaded, and then the money comes.
The benefit of passive income is that your earnings aren’t directly tied to the hours you work. This means you can work your full-time job, be a stay at home parent, or do whatever it is you do — while enjoying extra income on the side with little to no effort.
Since over half of the world’s millionaires have at least three streams of income, passive income is a must on the path to true financial independence. As Warren Buffett once said, “If you don’t find a way to make money while you sleep, you will work until you die.”