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Passive Income
Different Types Of Passive Income Streams
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[QUOTE="peace life, post: 140233, member: 47307"] Passive income differs from income earned such as wages or the proceeds of a private enterprise, as it is generally defined as income that flows with little effort. Examples of passive income are rental income and any business activities in which the earner is not financially involved during the year. [URL='https://sites.google.com/view/smoothie-deit-za/home']active income[/URL]: It is the income that most people deal with (the traditional job), that is, money in exchange for the time and effort that an individual provides. Time and effort are the two basic conditions for this income. Any shortcoming of the individual in permanence or effort reduces this income, and in return, the more time and effort the individual puts forward will earn more. Passive income: It is the achievement of recurring income from the work of the individual's work for one time, that is, the individual provides money, effort or time for one time, after which he will receive daily, monthly or annual cash flows, without the need for his actual existence later. Why is it called passive income? Because our behavior is negative towards it: that is, without effort or with the least effort possible. Sources of passive income in real life: 1. Investing in real estate: The most popular form of passive income is owning a building, an apartment, or any property and renting it. This monthly or annual income from renting the property is passive income, but why? Because the person gave money once when he bought the property, and he gets income later without any trouble, while sitting at home. But this type of investment usually has high purchase or construction costs, and no one can afford them. 2. Renting Private Objects: This is by letting a person rent the things he owns, such as cars and machinery, and if he does not have the ability to purchase these things, he can buy them in installments, and start renting them to complete the payment of the installments and obtain a profit margin. 3. Buying shares in the stock exchange: One of the ways to earn passive income is to buy shares in the stock exchange and get profits. It is important to search for the best companies whose shares make profits. 4. Telecom relay towers: Which are usually placed on tall buildings, and they are useful for owners of tall buildings, as they rent the roofs of these buildings to telecommunication companies, but they have health damage. 5. Annuities: Which the individual obtains as a result of contributions he pays during his years of work, and when he ends, he takes them in the form of monthly payments. 6. Deposit in Banks: One of the most common forms of passive income, when a person deposits his money in a bank, and receives quarterly or annual interest on these deposits, this is income achieved without any work or effort. [/QUOTE]
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