MAMA SAY WHAT?!

Making money while you sleep has a beautiful ring to it, and that’s the idea behind passive income.

Most people think of income as something they have to do labor for, like going to work for a day and then getting paid.

Passive income is money you earn even when you’re not working and so for working parent or even stay-at-home parent, that can be liberating.

It takes some investment of time, money, energy, or all three, but then the money just comes in, helping you pay off a student loan, dig out of credit card debt.

What Is Passive Income?

Passive income is defined as income that requires minimal effort to earn. It is a form of income that builds you wealth even when you’re not working.

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For example, if you invest some money and your investment increases in value, that’s passive income.

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If you create something digitally–like a video or a song–and you get money every time someone views it, that’s passive income.

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Passive Income vs. Active Income

Passive income is indirectly obtained, such as interest from savings accounts or dividends from stocks.

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Active income on the other hand is money you substantially work to earn.

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8 Truly Passive Income Ideas

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