What is Passive Income?
Passive income is money that is made without being directly dependent on the amount of time or effort placed into the task on a daily basis. For example, a person that works at an hourly rate can only earn as much money as they are allowed to make per hour (excluding overtime, bonuses, etc.). Therefore, a person working an hourly job is not earning passive income because income comes directly from performing a service. However, a person that runs a blog or podcast does make passive income as the income comes as a result of work done in the past with no intense work in the present required. Passive income requires little to no daily effort, but still provides a way to expand personal finances and improve your financial freedom.
Why is Passive Income important?
Passive income is important because it has the potential to exceed the limitations of an hourly salary or wage. It does not directly depend on your time and allows you to make money when your direct attention and constant efforts are elsewhere. This means that passive income will be 100% added to your regular salary. However, passive income may require a heavy investment and a vast amount of knowledge at the start of the project. There are many ways to begin your passive income journey whether it is in the Philippines, Southeast, Asia, Europe, or North America, the beauty of passive income is that it can be earned anywhere because you don’t have to actively manage it. In addition, there are many ways to make passive income online.
What are some examples of Passive Income?
As an author, I gain passive income from my books. People from around the world purchase my books even when I am asleep. Variety in my products helps me to interest a broader potential audience. However, books are just one form of passive income that I can explain from personal experience. A great point to keep in mind with passive income is the amount of time and money needed for the initial investment. It required countless hours and a fair initial financial investment to create my books, but now I only worry about maintenance and have a relatively steady stream of passive income. My passive income from writing books allows me to travel the world and get inspired by the places I visit and the people I meet. In addition, with the passive income I make, I invest a portion into the stock market to magnify an additional source of passive income.
As a Filipino, there are multiple ways to create passive income that can vary in profitability and financial gain. Passive income made from real estate is an excellent option when properly researched and funded, but most likely is not an option for beginners. Invent a stream of passive income that works with your skills and talents.
Here are a few options for Passive Income:
Start a blog
Begin a podcast
Write a book
Create a product to sell online
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