Passive Income: Definition, Benefits, and Examples

Passive Income – Having a lot of income is everyone's dream. Especially if you have passive income or passive income. You don't have to do a lot of work, but your income still flows every month. It's so good!

What exactly is passive income? What are the benefits and what are the examples. Well, here's an explanation of passive income which will definitely help clear up your confusion. Come on scroll down!

Also Read: How to Manage Finance 2 Million Salary: Guaranteed Accurate!


What is Passive Income?

passive income

Quoted from Forbes, passive income is money that you earn without too much effort on a regular basis. Once you have passive income or passive income, you don't have to take care of it every day, but once in a while you still have to check it. 

Hah? How? In short, passive income is the income that a person earns with minimal activity. You could say side income or additional income.

Benefits of Having Passive Income

There are many benefits that you can get if you have passive income. Here are 5 benefits.

Shorten Working Time

As an office worker, you have to spend 8 to 10 hours a day in front of the computer. Sometimes the money you earn is not enough to guarantee old age. If you have passive income, you don't have to work much. You can still do your office tasks while having additional income.

Shorten working time

With passive income You don't need to spend a lot of time, even some types of passive income don't take much time. So, do not interfere with your work in the office.

Achieving Financial Goals

You may check passive income, you will quickly reach your financial goals. You can buy a house, a car, pay for education, and so on. With passive income you can increase your savings quickly even though you have fixed working hours.

Can Work Anywhere

passive income

Some people definitely have the desire to work anywhere with flexible time. With passive income, you can work anywhere, from home, cafe, even when you are on vacation. With passive income does not provide time and place restrictions. You are free to work anywhere.

Can Do Liked Activities

Passive income can be additional income or main income if the income you earn can meet your daily needs. With passive income you can do various activities or hobbies that you like.

If you work in an office, your time is very limited. You also need time to make yourself happy. If you have a lot of assets that generate passive income, you will also have a lot of time to activate the ones you like.

Old Age Guarantee

Some of us must be worried about the future. The income earned can only meet daily needs. What if it's not working? Where do we get our income when we retire?

passive income

If you have passive income, you don't have to worry anymore. You can still earn money, even if you don't work.

An example of Passive Income What You Can Choose

To get passive income, you also still need "start-up capital" in terms of money, time, or other resources. Here's an example passive income that you can do to increase your income.

Investment

Investment is indeed a trend these days. Many people, both young and old, are getting interested in investing. Investments can be made by everyone. Investment also takes various forms, it can be in the form of gold investment, mutual funds, stocks, and others.

In addition, investment is one of the passive income which does not require large capital. You can adjust the amount of capital according to the budget you have. But, you should not expect to get a quick profit through investment because the nature of investment is long-term profit.

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The source of passive income assets that you can do is do business. Doing business is not easy, but the profits generated if your business is successful are also big.

business

You can start with small businesses from home, such as opening an online shop or buying capital franchise. At first it may be difficult, but if occupied, the business can be a promising passive income in the future.

Property

If you have unused property, such as a house or building, you can rent it out. Renting a property can be passive income very promising.

However, when you own a rental property, you also have to provide for repair and maintenance requirements which can be time and money-consuming. You still have to maintain the property you own and check it regularly.

Asset Sharing

Almost the same as renting out a property. You can share your assets with others with the aim of making a profit. Sharing assets here can be in the form of renting out land or land, for example, you have land or rice fields that you don't use, other people can use the land to plant rice whose profits will be divided according to the agreement.

passive income

You can also rent out houses, such as boarding rooms or rent out cars for other people to use. In addition, if you use the car every day, you can place an ad on the car. In exchange for putting vinyl stickers on the car for an agreed time period, you will get passive income without disturbing your routine.

Royalty

Royalty

If you are a musician, writer, or artist. You can make your work as passive income in the form of royalties. Royalty is the amount of money paid for the copyright of a work.

If you have the potential to become a musician or writer, you can maximize that potential to earn royalties for your work. Passion for work, yes!

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Well, that's some information about passive income. You can try to get passive income from an early age so that your old age is more secure.

To manage your finances and your family. You can use the Whiz Finance App. You can take advantage of existing features to help you also invite your little one to learn to manage finances.

LET'S USE WHIZ AND TRY THE FEATURES!