What is passive income?
“Passive income” is not merely a buzzword you see on social media, but also a financial concept that any individual can take advantage of to secure a comfortable life in the future. It is the opportunity to generate an extra source of income stream without having to work actively for it.
Advantages of passive income
Having passive income is the gateway to financial freedom. Take charge of your future by planting the seeds today so that you can reap the following benefits:
Have a financial safety net to help you tide through difficult times.
You can take time off to fully enjoy the present and pursue your dreams.
You don’t have to be completely reliant on your paychecks and your extra income stream can help you out in a pinch.
Plan ahead for your well-deserved retirement and live your golden years exactly the way you have always envisioned them.
There are various financial opportunities in the market to generate passive income, but each one comes with its own risks:
Investing in funds and stocks may offer big returns, but the risks are also higher. Buying and selling stocks also require certain financial knowledge and staying up-to-date with the volatile stock market.
Renting out property can be a great source of passive income. But first and foremost, you will need to invest a huge capital in a real estate property before you can earn an additional income through it.
Intellectual property can create an additional steady stream income, but this option is exclusive to individuals with a unique set of skills and talents.