What Is Passive Income?
Let’s say you really like your job. Well, that’s probably asking too much. Maybe you’re like most of us and you just barely get by at work – you don’t hate every second of it and you’re at least relatively good at what you do. You slave away for however many hours a week and you receive one paycheck. A single amount, say $2,500 per month after taxes (based on an average annual income in the U.S. of around $40k per year). This amount has to get you through to the next time you get paid.
What happens if you lose your job?
Well, you’ve just gone from an income stream of thousands of dollars per month… to absolute zero. That’s right – nothing. If you’re lucky (read: fiscally responsible), you have some savings that will get you by until you find your next gig. Maybe you start living off of credit cards to make it through.
So now, trade that one job that earns you $2,500 per month for five different income sources each netting you $500 per month. Even if you lose one of these streams, you still have a large percentage of your income remaining from the others.
“But why should I quit my job?”, you ask. “And why would I want to work five part-time jobs when I can just have the one?”
I’m not suggesting you quit your job, and I’m not talking about going out and applying for multiple part-time jobs. That would be a ridiculous way to live. What I’m referring to is the factor that makes income passive – you make money by doing very little.
Depending on where your search for passive income streams takes you, you probably won’t even have to quit your day job. And if those new multiple streams income are truly passive, maybe you won’t want to! This website contains tons of information on various types of income and gives you tips on making them earn for you while doing the least amount of work possible.