If you are interested in learning more about passive income it’s important to understand what passive income is first. So what is passive income? I’m afraid there is no one answer to this question and the concept of passive income will vary depending on who you ask about it.
Some people say passive income are earnings which you get without having to work for them, others say passive income are earnings you get that require only some “little maintenance” work on your side. According to the U.S tax code passive income is an “Income that does not come from active participation in a business”…
It’s up to you to decide what you want passive income to mean, your definition might also change over time while you keep learning more about this fascinating world. To me right now passive income could be defined as:
“income that you receive on a regular basis generated by work/projects you did in the past and that require little effort to maintain today”
So according to this definition passive income is no magic formula that will allow you to just sit down and earn money, it’s not a method which will allow you to make “easy money” or “fast money” either. Instead it’s a business model which allows you to decide when you want to work the hardest and when you want to relax maintaining a regular stream of income.