Passive Income: A Step By Step Guide From Beginners To Advanced ( Beginners and Intermittent and Advanced ) by Anthony Cris

CHAPTER 1: UNDERSTANDING PASSIVE
INCOME
The first step is to understand passive income and how it varies
from the money, you make at an hourly or salaried job.
The distinctions are significant because they show the path to financial
independence. Passive income is the way to go if you want to be your boss
and the architect of your future.
Active and Passive Income: Differences and
Similarities
You know what active income is, even
if you refer to it differently. Active income is the revenue
you must labour actively for a predetermined amount of time to
obtain. For instance, you only get paid for the hours you work if you have a
job that pays you by the hour, correct? That is considered active income
since if you want to make a living, you must engage in that activity
regularly.
The same is true for jobs that pay salaries.
You are required to perform a particular amount of
work for the money you earn. To get paid, you must do the tasks listed in
your job description, arrive at work on time, and work a predetermined
amount of hours. If you have exempt status, you can even be obliged to
work more hours without getting paid.
And lastly, freelancing counts as active income. Only the task that is
completed results in payment for freelance workers.
If they become ill and cannot work, they are paid nothing.
Let's compare it to passive income now. The creation of passive income
may involve some effort. However, once you've developed a passive
income stream, it frequently just needs the barest amount
of upkeep to keep the cash coming in.
Let's examine a straightforward example. You must invest time and effort
into authoring an eBook. You'll need to pay for an editor and a cover
designer and ensure that the book is in the correct format to
sell on Amazon. When the book is finished and available on Amazon,
you will get paid for each copy purchased. What it is Enables passive
income. You still get paid even if someone purchases a copy while you're
away or sleeping.
You can now understand how passive income is the key to obtaining
financial independence. With passive income, you may be able to work less
and yet make a livelihood instead of lengthening your
Work week.

Passive Income: A Step By Step Guide From Beginners To Advanced ( Beginners and Intermittent and Advanced ) by Anthony Cris