What is Passive Income 101

Passive Income 101

What is passive income? Passive income is earnings you are receiving by someone from ventures in which they did not actively participate.

The Reasons Why Passive Income Is So Important

#1 – Passive Income gives you the freedom of time

#2 – It reduces your stress, anxiety and fear of the future

#3 – It allows you to pursue doing the things you love rather than what pays the bills

#4 – It gives you the ability to live and work from anywhere

#5 – It provides a platform for financial stability and growth

There are three main categories of income: active income, passive income, and portfolio income.

In this post, we will be primarily be discussing about passive income.

Passive income is defined by money being earned regularly with little or no effort on the part of the person who’s receiving it.

Who wouldn’t love earning money from putting little or almost no effort? There is limited time on this earth every single day. We should try to maximize our time with friends, family and to live life to the fullest. One of the greatest thing about passive income is that you are getting paid for something you have initially put work in which you are being rewarded later down the road.

Today, I thought I would take a moment to give you some insights on passive income. Not a lot of people know what they should do with their savings, or ways to increase their asset. I decided to give you some insights and help you become more aware.

There are various ways to earn passive income such as: rental properties, dividend, high savings account, book, or creating an online business. These are just some examples of ways to earn passive income.

Rental Properties

You may ask, rental properties are very expensive, not everyone has enough capital to buy a property. Yes, very expensive initial investment however some of the things I have listed have much lower capital start.

If you buy a property at the right price, at the right time and the ability to find a tenant and achieve full occupancy – you will be receiving monthly rent.


A dividend is a distribution of a portion of a company’s earnings. They are decided by the board of directors in which it pays each of its shareholders a portion of their earnings. Dividends can be issued as cash payments, as shares of stock, or other property.

Larger, established companies are often the best dividend payers. They issue regular dividends as they want to maximize shareholder wealth. Companies in the following sectors have among the highest historical dividend yields: basic materials, oil and gas, banks, and financial, healthcare and pharmaceuticals, and utilities. There are also real estate investment trusts (REITs) that are also top dividend payers.

High-Savings Account

Savings accounts may be one of the most basic understanding and also the safest. There are many banks out there that offer high interest rates, and if you keep on accumulating those interests rates those can add up quickly.


This can be a lot of work in the beginning, but once the book is created and marketed it can provide you with a passive revenue stream for years. You can sell your book on your own website, or perhaps make an electronic version and listing them on Amazon.

You can be sleeping at home and still be earning money through the sale of your book. How great is that?

Creating an online business

There’s no doubt that in this generation there are more people online than ever before. Some great examples of online business are making YouTube videos, creating an ecommerce website through Shopify, or perhaps make a blog.

YouTube Videos

This venture is growing rapidly. There are lots of great content creators on YouTube creating videos just about anything you can think of. Some great examples are – music, tutorials, opinions, comedy, pranks, or daily vlogs of their lives. You can make money through Google AdSense to the videos, which will overlay your videos with Google automatic ads. Whenever viewers click on those ads or watches a short clip of the advertiser video, you will earn money from AdSense.


This is one of my favorite business venture out there right now. Why Shopify?

It is the ecommerce platform made for you.

Shopify is the world’s leading multi-channel commerce platform, powering more than 400,000 business who have collectively sold more than $34 billion worth of products online or in-person.

  • A home for your business – Fully customizable website, online store, and blog.
  • Limitless potential – Unlimited bandwidth, product inventory, and customer data.
  • Sell anywhere your customers are – Multiple sales channels like Amazon, Facebook, Pinterest, and more.
  • Store management made easy – 24/7 award-winning customer support.

You can effectively create a beautiful website.