What Is Passive Income?

So, to get us started: What is passive income and how do I create a passive income stream. Well quite simply all personal income and be broken down into passive income and active income. Active income is money you earn, for instance your current job. Where you are trading you time for money.  Ever heard the term “time is money”, this is the major flaw in active income because at the end of the day we have limited time and therefore limited money. But we can change all this by implementing the art of passive income. Put simply passive income is income that we do not have to keep working for to gain income after a small amount of set up work. For instance some more common examples of this are;

·         Authors and Musicians receiving royalties long after they finished writing the book.

·         Dividends from Shares

·         Interest from a savings account

Basically Passive income is Free Money we do not have to continue working for and although the income might not be as much as you could earn from an active income stream the possibilities are endless and even if you are only earning $1 a day from your passive income there is no limit t the amount of income streams you can have because you don’t have to do any work to maintain them except cash your cheques at the end of each month.