Many people think that generating passive income means making a huge sum of money. The definition of passive income is quite broader than that. I believe that passive income refers to a system that helps you generate wealth without much efforts. It is a system that helps you make money by using your money. Wealth helps you to build wealth and this is the basic principle of passive income in a nutshell. So, what comes to your mind when you think about "passive income"?
How Do You Define The Term "Passive Income"?
- Thread starter Passiveearner
- Start date
In my opinion, passive income is the kind of earnings that one gets every time from an investment or a project that was once made Sometimes back and generates income timely like the collection of rent from the house to let.
I have stopped publishing new articles on Hubpages, but I receive payment from hubpages every month. THis is passive income. I do not spend more than an hour a day on my blogs yet I make money, this is also a passive income
- Thread starter
- #8
Passive income refers to any kind of income that makes you a lots of money in the end. Many people say that active income is different from passive income. However, now many people consider active income ideas as "passive income" as well.
I always think of investment when u hear the word passive income, as passive as investment sounds helps you earn money and that's if you are invest investing in the right source since some investment programs are full of scams.
Exactly, passive income is an investment on its own, and like most investments out there, you need capital to be able to invest. Which is why i said its more like your money working for you, cause after investing your money, you do not need to put in any work.
I think passive income is revenue that comes in regardless of whether an individual puts in work or not.
Revenue from rental properties qualifies as passive income in that the owner of such property does not need to have spend any money in a particular month to receive revenue.
Revenue from rental properties qualifies as passive income in that the owner of such property does not need to have spend any money in a particular month to receive revenue.
- Thread starter
- #16
I think that many active income ideas also fall under the category of passive income. This also includes any kind of active job or activity that generates more than enough revenue for you.
Passive means not being active, and so therefore passive income is that which you make without being active just as in crypto staking, real estate rentals etc and this are jobs or things that brings in money for you aside your main source of income.
A passive income generating program does not necessarily need to be one's side hustle. Many people are deriving their only income from passive income generating schemes. This scenario is true across all age groups and backgrounds.
It is not a side hustle but you need an income first before you can invest in a passive source, for you cannot just start earning passively without the investing in it or having an active source of income where you put in some amount of money and just forget about it and it will just be bringing in income passively without you being active there.
- Thread starter
- #20
Passive income could be defined in many ways. I believe that if an activity is generating huge amounts of money, then it can be labelled as a residual source of income that may fall under this category. If an activity is making you rich, then such kind of business activity can be defined as passive income.
