Passive income is one of the ways to gain financial independence. It consists in constantly receiving money from a job that has been completed once, for example, writing a book, buying securities, renting out a home, etc.
The appeal of passive income is that it doesn't require daily, hard work. The traditional way of earning money, for example, as a driver or a teacher, involves constant efforts to generate the same income. A prestigious job in a large company can enrich a person, but the termination of a job inevitably entails a lack of money. Depending on the skills and abilities, as well as the availability of money, you can choose one of two ways to generate passive income: with or without an initial investment. The former include, for example, the purchase of securities and the receipt of dividends from them, but this presupposes the presence of an initial large capital. Buying physical assets to rent them out is also passively generating income with an initial investment. This method of generating passive income can be very profitable, but it comes with natural risks, since often organized with borrowed money. Passive income without investment is more affordable for most people. To generate income in this way, you can, for example, write a song or a book, create a selling site or register a patent for your own invention. Naturally, such an organization of passive income requires a person to maximize their efforts at the initial stage.
