fbpx
Saltar al contenido
  • Start Here
  • About
  • Recommendations
  • Blog
    • Lifestyle Design
    • Making Money
    • Psychology
    • Travel & Exploration
    • Quotes
  • es_COES
  • Start Here
  • About
  • Recommendations
  • Blog
    • Lifestyle Design
    • Making Money
    • Psychology
    • Travel & Exploration
    • Quotes
  • es_COES
Search
Close this search box.
Community
  • Start Here
  • About
  • Recommendations
  • Blog
    • Lifestyle Design
    • Making Money
    • Psychology
    • Travel & Exploration
    • Quotes
  • es_COES
Search
Close this search box.
Search
Close this search box.
Community
  • Start Here
  • About
  • Recommendations
  • Blog
    • Lifestyle Design
    • Making Money
    • Psychology
    • Travel & Exploration
    • Quotes
  • es_COES
Online Business Terminology

What is Passive Income? A 101 Guide

  • December 3, 2023
3d-20-questions-that-unlock-freedom

FREE DOWNLOAD: 20 QUESTIONS THAT WILL CHANGE YOUR LIFE(STYLE)

A simple roadmap for setting up a life you don’t need to escape from.

Unlock Now
  • Home
  • Terminology
  • What is Passive Income? A 101 Guide
Last Modified: December 3, 2023
No Comments
What is passive income

You’ve no doubt heard the term before. It gets thrown around quite a bit these days in financial circles (so much so that the real meaning tends to get muffled). Let’s take a look at some ideas for creating passive income and aspects to the process that many often overlook.

Blake Miner

I'm a social scientist and entrepreneur fascinated by the psychology of personal freedom and location-independent business. Since selling my business in 2018, I've slow-traveled the world, advising innovative companies and creatives while exploring diverse cultures.
Facebook
Twitter
LinkedIn

Active income requires constant input of time and effort to generate money. It’s how most of us make our money.

Passive income on the other hand is basically everyone’s dream. Imagine not having to actively work to but still be able to get paid?

The trouble is that most passive income ideas that get thrown around aren’t actually sources of passive income—at least from the get go. 

In my experience, it takes lots of active effort in order to set up a new passive income source. 

It can require taking daily action for a period of time before it starts to bring a return. 

Take starting a blog, for example. 

It can create passive income, but that may take months or even years of consistent writing, creating, connecting and delivering value.  

Even real estate requires an active investment of time and management, at least in the early stages.

In reality, there are only a few true sources of passive income, and those typically become available as options once you already have a sizeable income or amount of savings. 

For example, to receive dividends requires a rather large cash investment. Business partnership earnings requires you to build or buy into a business.

Why Should You Build Passive Income?

I can think of several reasons why you might want to build passive income, but Warren Buffet said it best:

“If you don’t find a way to make money while you sleep, you will work until you die.” 

Reasons you might want to build passive income:

  1. You want to retire early.
  2. You want to fund world travels.
  3. You want to take a sabbatical.
  4. You want a safety net in case of an accident or injury.

Potential Passive Income Sources

I’ll call these potential passive income sources because they’re projects that will require an investment of some degree of sweat equity or time in order to become passive. 

In my opinion, the best way to create passive income and a growing asset is by investing in building (or buying) an online business.

You might consider:

  • Starting a blog
  • Creating an information product
  • Starting an ecommerce business
  • Launching a dropshipping website
  • Starting a productized service

Related: 7 Scaleable Online Business Models

No matter what your passions are, there is likely a way to create a form of passive income around it. 

Don’t have any ideas? These questions might help.

Or, feel free to leave a comment and I’d be happy to brainstorm ideas or next steps.

Originally Published: August 29, 2019

Our website is supported by our users. We may earn a small commission when you make a purchase through links on our site at no additional cost to you.

Filed Under: 
Terminology, Online Business

Leave a Reply Cancel reply

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Let’s Connect

Facebook Twitter Pinterest Instagram Youtube

Blog CATEGORIES

Categories

MOST RECENT Posts

Gold LIRA: How to Buy Gold With a Locked-in Retirement Account

Where to Buy Gold in Canada: A Trusted Buyer’s Guide

Gold TFSA: How to Hold Gold in Your Tax-Free Savings Account

Gold RRSP in Canada: Everything You Need to Know

GET RECOMMENDED RESOURCES
Join Our COMMUNITY
LEARN THE BUSINESS MODELS
Pathway to Freedom Podcast - Sidebar
digital-nomad-podcasts-pathway-to-freedom

Ready to create your own freedom?

Kickstart your journey towards autonomy today.

To propel you forward, we’ve created a complimentary 7-day, 7-minute series – a daily challenge in Choose-Your-Own-Adventure style! Immerse yourself in the wealth of tools and tactics essential to crafting your own life of freedom, regardless of where you’re starting from.

Simply click the button below to sign up completely free!

PRESS START
  • Related Posts
online-jobs-for-introverts

29 Online Jobs for Introverts: Remote Work For the Reserved

flaneur-pronunciation

Flaneur Pronunciation: How to Pronounce (and Embody)

best-books-about-starting-an-online-business

12 Best Books About Starting an Online Business

Get Started

  • Start Here
  • Lifestyle Design Books
  • Recommendations

Learn

  • Our Story
  • What’s a Flâneur?
  • Unlock Freedom

Connect

  • Contact
  • Join the Community
  • Sitemap

Read

  • Privacy Policy
  • Disclaimer
  • Terms and Conditions

Follow Along

Facebook Instagram Twitter Youtube Pinterest

© 2023 Flâneur Life. All rights reserved.

Made for free range humans 🐢🚶