Every Bit Of Passive Income Frees Your Time

Passive income or sometimes called residual income is smart money because it gives you the freedom to do other things whilst the money stream keeps coming to you. As people often say, you continue to make money whilst you sleep.

Different types of passive income have different characteristics.  The typical ones we come across most often are as follows:

Interest from Bank –– it is a good passive source of income.  It is also a convenient spot to park your extra cash whilst you decide what investment vehicles to look for.

Dividend income — holding stock (shares) for yield is one of the strategies of good financial planning.  In good times in particular, this is an excellent leverage because you can tap into the high-yield blue chips and ride on their extra success easily.

Rental income from properties / other assets — this covers most kind of rentals, from leasing of residential or office premises , to leasing of equipment or machinery, etc. By allowing a small portion for expenditure, you can hire a management office or an agent to take care of everything for you. Potential capital gains on properties is often a sweet added bonus.

Royalties and Patents — income derived in this class are usually relating to “intellectual properties”.  Common examples involve professionals like singers, authors, and inventors, etc.  If you have special talents, go for it.

Network Marketing or MLM business — this provides a level playing field for everyone regardless of age, education, gender, race, and background.  Also, there is usually very little or no capital requirement at entry.  The industry has been around for over half a century and is unquestionably to become a major force in the distribution of products and services in the 21st Century.  Just think about it, if you are given the world’s top quality product in the field, would you simply walk away and not doing anything about it?  We believe when people truly understands what network marketing (or MLM) is about, over 90% of the population would be doing it.

Internet Marketing — this area is becoming a hot property.  More and more people are catching the vision of passive income streams via the internet, by way of affiliate programs, e-books, referrals, and advertisement commission, etc.

The world is changing fast, and there is always something new to learn.  For someone who would see himself / herself five (5) years from now still working on a time-for-money scenario, or see themselves getting more and more busy without an end, this is definitely an area worth checking out.