So, What is Passive Income & How Can You Start Earning Income Passively

It's Making Money While You Sleep, While You Hang Out With Friends, While on Vacation… You Get The Idea

If someone was to ask me - what is passive income - My personal definition and answer to that question would be: Passive income is money that you make while you’re not actively working. It’s having systems or investments in place that generate money or income for you even when you are not exchanging your time, physical or even mental labor / efforts for money.

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Active income is the opposite, active income is when you, for example, go to work, and exchange your time and skills for your employer's money. Or when you are actively engaged in business activities in order to make money and turn a profit. If you don’t actively work, you don't make any money.

Passive income is when you are able to make money even when you aren't doing anything. For example, while I was on vacation with my family a few months ago, my Youtube channel was making money for me via ad revenue and also helping get referrals for my NovaTech business, for which I earn affiliate commissions from NovaTech for those referrals. So I was literally making money while checking out the beautiful view of the city of London England from the London Eye.

While that sounds great, how easy is it to make passive income? Although the concept of passive income is essentially making money while not having to work, building the actual systems that allow you to do that often requires a lot of work - in order words you need to put in work so that you don't have to work.

So, before I was able to make money while riding the london eye checking out the beautiful view of the city of London, I first had to build my YouTube channel, record videos, edit those videos, do research for the content of those videos, upload those videos, learn how to draw attention and views to those videos etc - all of that takes a lot of work, but eventually that work upfront allows me to make money while sleeping or on vacation down the line.

Passive income therefore isn't for the lazy or a lazy way of making money, or a way of making money without doing any work, it’s actually quite the opposite.

The alternative to building systems that will generate passive income for you, is investments. When it comes to making passive income via investments, you are essentially sending your money to work, so that your money is working to make you more money. This for example, could be investing in stocks or cryptocurrency.

You invest some of your money into stocks or crypto assets that you believe will increase in value. The work on your part is the purchase of that stock or crypto asset. If the value of that stock or crypto coin does go up - essentially increasing the value of your assets, you’ve made yourself some passive income. The people that bought bitcoin years ago for example when it was still valued at less than $1,000 have made some very sizable passive income, just by holding bitcoin over a period of time. Although crypto currencies have experienced a decline at the time of writing this, bitcoin right now is still worth around $20,000 USD. So had you bought at say $1,000, you’d still have made some very sizable passive gains despite the recent decline.

We’ve looked at the question: what is passive income, but why is passive income important and why should everyone (in my opinion) strive to make passive income? I discovered that the amount of money I can make that is directly tied to my physical efforts is limited.

Warren Buffet - one of the greatest investors that's ever lived said “If you don't figure out a way to make money while you sleep, you’ll work till you die”

The late Dr Myles Munroe, one of my favorite authors and speaker, also use to say “work yourself out of a job”

True financial freedom, I've discovered, isn't just about having money, there are people that make a lot of money who aren't free. True freedom is also freedom of time. In most cases, as long as you are working for money, you’re not truly free.

True freedom in my opinion is the ability to make money without having to physically be there. This frees up the time for you to truly pursue your life's purpose, have time for your family, have time to devout to the things you really care about - instead of feeling bound and trapped in a job or profession you don't really like because that’s your source of income, livelihood and only means of keeping a roof over your head and food on the table.

True freedom is having the time and finances to live life on your own terms, and finding ways of making passive income gets you that much closer to living a life of true freedom

Now that we’ve answered the question what is passive income, what are some of the ways you can make passive income?

Let me share a couple of my passive income generating avenues with you. You’ll discover some of the ways I’m currently generating passive income, on this page.

Right now, I’m making most of my passive income with NovaTech. If you don't know what NovaTech is, check out this link to find out about NovaTech and how you can make passive income with NovaTech

If you are ready to get started making passive income with NovaTechFX , you can register here. The link to the registration page is my affiliate link and I will make a commision from novatech only after you've funded your account. Please also make sure you have your crypto ready before you register so you can fund your account right away.