passive income

What is Active Income vs Passive Income?

Active income, versus passive income, is what is traditionally described as salaries, wages, commissions, or tips that are received from businesses for services that have been directly performed.  It is also characterized, as coming from an activity in which there is material participation.  This is what many of us expect to earn throughout our working lives, typically between 16 and 65 years of age, whether it be earned through an employer or through self-employment.

Generally speaking, passive income can be defined as income that (1) is derived through indirect activities or an investment in which there is no material participation, (2) is received on a regular basis, and (3) requires little or no effort to maintain it.  Some have also described it as a type of unearned income.  There are many types of passive income sources including those from stocks or other capital gains, interest or dividends, winnings from a lottery, retirement pay, some type of online work, rental properties, and music or literary royalties.

Now, who wouldn’t prefer to earn passive income versus active income?  Undoubtedly, if you asked a large group of working Americans whether or not they prefer to earn active income or passive income, it seems the overwhelming majority would answer — passive income!  And while there are many ways to earn passive income, one of the most recommended options, in terms of low investment needed and high return possibilities, is that of passive income from real estate investing through single or multi-family residential rental properties.

So are you wondering if investing in real estate rental properties is complicated or too overwhelming for you?  Rest assured, that there is a wide spectrum of investors, from all ages and professions that have made the jump and are well on their way to firing their boss and taking charge of their financial and retirement destinies. You don’t have to reinvent the wheel either.  Look for more free, valuable information updates and learn how quickly you can get started today with my Starter Kit.

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