# What is Passive Income ?
Passive Income is a type of income which doesn’t requires a person to work constantly to get it, and it reoccurs after a period of time which can be a week or month or a year or any period. This type of income fluctuates more than Active Income, but there is no certain limit of how much a person can earn from a passive income source.
Passive income is income that requires little to no effort to earn and maintain. It is called progressive passive income when the earner expends little effort to grow the income.
Passive income is money earned with minimal activity through any venture that requires little daily effort or upkeep on the individual’s part.
# Types of Passive Income –
There are many types of passive income, but mainly passive income are divided into the following –
1. Rental Income
2. Royalty Income
3. Interest Income
4. Profit Income
5. Capital Gains
6. Dividend Income
We will discuss about these in details in our next blog post
# What needs to create a Passive Income Source ?
To create passive income you need Time, Money, Skills and the guts to finish what you have started because it takes a lot of efforts in the beginning to create a passive income source, and this is point where people quit.
# How to get started ?
There’s no magic trick to create a passive income source. You starts with the basics, like you learned how to drive a car or plant a tree.
So how do you plant a tree or tree of money ?
Creating passive income source is like planting a seed, nurturing it, taking care of it and in the end it won’t need you to take care of it and it will start giving you fruits of your efforts, this is the way the tree or the tree of money grows and gives income or money to its owner. It will provide you the income you desired, even when you are sleeping.
So before you start, you need to do some work on yourself for yourself.
Questions to answer before you start –
1. What kind of passive income source you want to create ?
2. How much money you need to create it ?
3. How much time and efforts, it will it take to create this source ?
4. Do you have the necessary skills to create and manage this source ?
5. Re-think about the type of passive income source, can it be created with the Money, Time and Skills that you have,
If Yes, then get going,
If No, think what kind of passive income source can be created with the available resources (money, time and skills).
By answering this question you will get the an idea of what are your strengths and what kind of passive income source you can create with these.
Be Realistic about your expectations and commitments.
Be committed and consistent to the work you are doing.
Success is the Sum of Small Efforts, Repeated Over an Extended Period of Time.
Answers to the above questions will provide you the Steps to Get Started.
For example –
You want to write an E-book. It will require little to no money, a lot of time and hard work and the skill to write a book and to do research.
This E-Book is your passive income source which will provide you income when it is published, and won’t be needing to update regularly, although you might need to update it in a year or in 6 months, if required, but this won’t take as much time as it took to write the whole book.
This will keep the money flowing in.