Passive Income is not a Get Rich Quick scheme. It is a conscious building up of assets that over the time will become money making machinery for you.

 

In this article, we shall discuss in more details, what is Passive Income.

 

The definition of Passive Income is that asset giving you money without you committing a fixed time with it. Which mean that as long as you do not have to commit a fixed schedule, like a job, to it, then whatever income you get is considered Passive Income.

 

Under this situation, there could be many ways for you to make Passive Income, for example

 

1. Income derived from putting money in a bank, like interests
2. Income derived from investing into share market. There are two ways you can derive income from share market, one way is via dividends and the other way is via capital gain on the share price. Depending on your skill set, which is either in studying the fundamentals of company or in studying the human psychology, your source of income in this sector will vary.
3. Income derived from investing into money making machines. This can include kiosks, vending machine, washing machine etc. the amount needed is bigger and the risks is higher but the gain can be bigger as well. You may need to invest a certain amount of time and skills to manage these assets
4. Income derived from investing into businesses that produces cash flow. Other people manage the business, you invest. Ideal situation would be like car parking business, bill boards, car rental etc where the business model is easier and the sales can tracked relatively easily.
5. Income derived from spending your free time. This can be your hobby such as baking cookies, teaching swimming, dance performance etc. This requires you to have a certain skills and knowledge where others do not have.
6. Income derived from setting up blogs. The income can be indirect as it is not coming in direct proportion to how much time you spend on it. It has to be depended on how popular your blog is. Therefore it requires more skill set and knowledge to write the content and create traffic.
7. Income derived from people business. This can be network marketing. This require good PR skill and social skill
8. Income derived from properties. This requires much high amount of money and skills. Risks is also higher
9. There are many other types of passive income

The purpose is to highlight to you that there are possibilities everywhere. All you have to do is to be observant of your surrounding.