What? First, passive income, also known as residual income, is defined as income that is made from prior effort that takes little or nothing to maintain.
Doesn't that sound more appealing than punching a clock? You see, most people trade hours for dollars.
If you put eight hours into a job you get paid once for those eight hours.
In order to get paid again you have to put in more time.
That is the reason why the word job has been turned into the acronym J.
O.
B.
that stands for Just Over Broke.
Who? The truth is that the world's wealthiest individuals all have some form of residual income.
Wealthy people generally do not punch a clock.
They are usually owners.
They are the ones who you have likely been working for.
They have employees and leverage them.
I learned this concept from an experience while in college.
I had lived in large apartment buildings for about four years.
The owners of each of those large apartment buildings have passive income.
They made one initial effort, in this case one initial investment, and now each time the tenets pay rent the owner collects passive income.
The problem is that most people don't have the money or the means to build massive apartment buildings.
Why? In my opinion passive income should be taught and talked about a lot more in our educational system.
As stated above all of wealthiest people in the world have some form of residual income.
So there must be a reason.
You may have heard the saying "success leaves clues" I believe that whole-heartedly.
Most people spend 15 to 20 years of their lives in school.
Then they spend the next 30 or 40 years in a given industry or field.
Most live so tight during that time that there really is not much income left over to put away for retirement.
So the result is after spending a lifetime of working hard they retire just to be scared thinking everyday "will my money last long enough?" That is a very real situation for many people right now.
Many of you might be saying "but my dad did it the old fashion way and they did just fine".
The truth is, times have changed.
I'm not saying the old fashion way is dead and gone.
I'm just saying if you want to increase your chances and security, passive income is a must.
The Bottom Line The fact of the matter is that you can either work hard to build someone else's dream or work hard to build your own.
There are a lot of ways to make money both online and off but true residual income is tough to come by.
When a true passive income is in place not only do you have more money but also you have peace of mind.