2023-10-09 01:45:52
What is passive income?
Passive income is income streams that are generated with little or no initial effort after you have established the income source. They differ from active income, which requires continuous dedication of time and effort. Creating passive income requires an initial investment in time, capital, or effort, but you can then receive continued benefits without active participation.
Generating them is important if we take into account that more than 85% of Mexicans are stressed by their financial situation.
Differences between passive and active income
Passive income is generated after some initial work, while active income depends on putting in time and effort on a regular basis. Passive income offers an alternative source of income that does not require constant participation and can help create a financial cushion, according to a BBVA Argentaria blog.
Passive income options and ideas
Investing in financial products: Investing in bank deposits, stocks, bonds or other financial instruments can generate passive income through interest, dividends or appreciation in the value of assets. Monetize profiles on social networks: Become an “influencer” and promote products or services in exchange for commissions or payments from companies interested in reaching your audience. Create and sell online courses: Develop courses on topics of interest and sell them on online education platforms, where income comes from sales without having to constantly teach the course. Affiliate business: Promote third-party products or services through affiliate links and earn commissions for each sale or referred customer. Create and sell digital products: Create e-books, music, photographs or videos and sell them online, generating income from each sale. Real Estate Rentals: Buy properties to rent long-term or use platforms like Airbnb for vacation rentals. Create a website or blog with advertising: Create quality content and monetize the website or blog through advertising that generates income for each click or impression.
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