{"id":355,"date":"2023-08-12T19:25:00","date_gmt":"2023-08-12T19:25:00","guid":{"rendered":"http:\/\/marshalllodge.co.uk\/?p=355"},"modified":"2023-11-23T15:17:58","modified_gmt":"2023-11-23T15:17:58","slug":"what-is-passive-income","status":"publish","type":"post","link":"http:\/\/marshalllodge.co.uk\/index.php\/2023\/08\/12\/what-is-passive-income\/","title":{"rendered":"What Is Passive Income?"},"content":{"rendered":"
Passive income refers to earnings derived from an enterprise in which a person is not actively involved on a daily basis. <\/p>\n
Unlike active income, where earnings are directly linked to the amount of work performed, passive income flows whether you are working, sleeping<\/a>, or vacationing. <\/p>\n As Robert Kiyosaki (2017) explains in his best-selling book \u201cRich Dad Poor Dad<\/a>,\u201d passive income can be a way to achieve greater financial independence.<\/p>\n Unlike the typical income that requires constant work, passive income typically flows with less hands-on involvement. However, this doesn\u2019t mean no work is involved; it\u2019s often the initial setup that demands considerable time, effort, or capital.<\/p>\n <\/a>31 Passive Income Ideas<\/strong><\/a><\/p>\n The purpose of passive income is broad, spanning from financial cushioning to the possibility of early retirement. Generating continuous revenue without daily effort offers a means to enhance one\u2019s lifestyle, build financial security, or pursue other interests and hobbies<\/a>. <\/p>\n The significance of passive income goes beyond mere monetary gain, as it also provides a pathway to greater control over one\u2019s time, a diversified income stream, and potential long-term growth.<\/p>\n By investing in a diverse array of income-generating opportunities<\/a> tailored to your risk tolerance<\/a> and financial goals<\/a>, you can create a resilient and sustainable revenue stream.<\/div>\n<\/div>\n As emphasized by many financial experts, including those mentioned in \u201cThe Intelligent Investor<\/a>\u201d by Benjamin Graham (2003), careful planning and consistent monitoring of your passive income sources can lead to greater financial freedom and control over your time. <\/p>\n This step-by-step approach allows you to learn and adapt, maximizing the potential benefits of passive income without overextending your resources.<\/p>\n Passive income can stem from various sources, such as rental properties, investments in stocks or bonds, a wide of array of apps, and royalties from intellectual properties like books or patents. Each source has its unique characteristics, risks, rewards, and requirements. <\/p>\n While some sources, like savings accounts interest<\/a>, are readily accessible, others may need significant financial investment or specialized knowledge, like creating a successful blog that earns ad revenue.<\/p>\nPurpose and Importance<\/h3>\n
EXPERT TIP:<\/h4>\n
How Passive Income Works<\/h2>\n
Table of Contents<\/h3>\n<\/div>\n
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Sources of Passive Income<\/h3>\n