5 Types Of Passive Income to Make Money

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Each person's source of income is different; some are obtained from active income, and some are additional from passive income. Active income is obtained from the main job; a day of active income is an additional income, because I have to work continuously. While passive income is additional income to get more income. no need to work more.

Difference between passive and active income

• Passive income is income that is obtained without active involvement, usually derived from investments and assets owned, although it does not require direct work every day. The risk is that it cannot provide instant results because it requires an initial investment and is prone to a decrease in asset value.

• Active income is income earned through direct employment, income in the form of monthly salaries, and employment wages. The risk is vulnerable to losing your job or your position being replaced by someone else. In addition, you need time and effort continuously and have an age limit in work.

However, it is important for you to understand that building passive income is not always instant; many mistakenly understand it as a way to quickly get rich. Whereas passive income really needs strategic planning, discipline, and patience in why. Just produced a result.

Passive sources of income usually require an initial investment, either in the form of time, energy, or capital. And once the system is running, active activities tend to be minimal. As for the benefits that you will get when you have a passive income, it can provide financial freedom and a lot of free time. 

Because a person can reduce dependence on daily work so that they focus on what they like, be it a hobby or even able to develop a new business. Therefore, the existence of passive income allows someone to generate an income even though they are not working.

what are the types of passive income

Here are some passive income ideas that you can try in everyday life, and they can be done by everyone.

1. Bank Interest

If you save money in the bank and get deposit interest for a period of 1 year, then you will be able to get a percentage of your deposit interest. This is also a passive income.

2. Dividends

If you own shares in a particular company then you can also get a passive income from the dividend distribution. In the period of 6 months to 1 year you will get a net profit from the company, because most of our shares in the company.

3. Rental Property

If you have a lot of property. Property that you can rent to others, such as renting a house, shop, or an apartment. Then you will get a passive source of income from the property you have. Income will continue to flow as long as your property is rented.

4. Digital Business

Digital business opportunities today are very easy to do because of the rapid development of technology. You can create a digital product in the form of applications, e-books, and online courses. And you can sell them without having to reproduce.

In addition, you can also try affiliate programs; it will allow you to earn a commission on the results of promotions that have been specially linked. As for other digital businesses, you can take advantage of revenue from advertising on your media, such as AdSense on the web and YouTube.

5. Revenue from royalties

If you are an artist who manages to create a work of art, such as music, then you will be able to get a source of passive income from the royalty of the work you produce. If the work is given a patent, the company that uses it will distribute royalties to you.

There are many types of passive sources that you can get, ranging from the easiest to the hardest to get. And what you need to remember is that there is no really passive income at the beginning, because all of it requires an investment in the beginning, such as capital, time, creativity, or energy. Nothing is instant; everything takes time and consistency in doing it. If all is achieved, it will allow a person to achieve financial freedom in life.