In the previous tutorial, we looked at how to turn your passive income—income that’s disconnected from actual work—into actual wealth so you could become financially independent.
Passive, or residual, income is income that’s not directly tied to work. Rather than getting paid X dollars for an hour of your time, you’re paid a set amount for a product or service.
Passive income is the goal for a lot of want-to-be-entrepreneurs (sometimes called by the godawful name, wantrepreneurs). Instead of slaving away for someone else, trading your precious time for a few dollars an hour, you’re able to lounge on the beach in the sun with a mojito while cash flows into your bank account.
Over the past few tutorials in this series, we’ve dived deep into how to get started making passive income:
For many people, passive income sounds like the dream. You get to earn money while you sleep! You’re free to travel the world and work 4 hours a week! As we’ve covered in the previous tutorials in this series though, there’s a lot more to it than that.
In the last three tutorials, we’ve covered:
In the previous two tutorials we established what passive income is and the problems with active income, or trading time for money. This tutorial is going to build off what we covered in them by showing you how to get started with your first passive income project, so let’s recap.
In the last article, we looked at what passive income is and how it differs from active income. You should read that article in full, if you haven’t already, but lets recap things briefly.