Passive income is often defined as income that is continually earned with as minimal effort as possible from the person receiving the money. This is usually accomplished by creating a self-sustaining service or product that can be automatically distributed or maintained. For example:
• Monthly dividend checks from your stocks
• A rental property that earns you rental income each month
• An eBook that you sell online from a website
Do you see how each of these examples are different from your regular job? If you stopped going to your regular job everyday, what would happen?
• You’d be fired and your income would cease
In each of these examples, you don’t “have to go to them”. The dividend checks appear as long as the company has earnings and pays dividends. The rental check shows up as long as the tenant pays their rent. The profits from the eBook roll in as long as people are interested in your product. In each of these situations, money is made regardless of whether or not you go to your job.