7 Categories Of Passive Income That You Need To Know

[Ramolak19]

Passive income is the money that is earned with little to no effort on the part of the earner. There are several categories of passive income, which include highlighted below

1. Rental income: This is income earned from renting out property, such as a house, apartment, or commercial building.
2. Investment income: This is income earned from investments in stocks, bonds, mutual funds, and other categories of financial instruments.
3. Royalties: This is income earned from the use of intellectual property, such as music, books, patents and others.
4. Affiliate income: This is another income earned from promoting and selling other people's products or services.
5. Business income: This is income earned from a business that is run by others, such as a franchise or rental property.
6. Interest income: This is income earned from interest payments on loans, bonds, share and other financial instruments.
7. Capital gains: This is income earned from the sale of assets, such as stocks, real estate, and some other businesses.

Passive income can provide a steady stream of income for individuals who are looking to supplement their primary income or achieve financial independence. However, it is very important to note that creating passive income streams often requires significant effort and investment upfront in other to get adequate steady income