Understanding Passive Income: The Path to Financial Freedom
Understanding Passive Income: The Path to Financial Freedom In the world of personal finance, passive income has become a buzzword, especially for individuals seeking to escape the grind of a 9-to-5 job. But what exactly is passive income, and how can one start building it? In this article, we’ll explore the concept of passive income, its benefits, and how you can create streams of income that earn money with minimal effort on your part. What Is Passive Income? Passive income is money earned with little to no ongoing effort once the initial setup or investment is made. Unlike active income, where you trade time for money (such as a regular job), passive income allows you to earn money passively, whether you’re working or not. This can come in many forms, including interest, dividends, royalties, rental income, and more. Examples of passive income include: Rental income from properties you own Dividends from stocks or investments Interest from sa...