Passive Income Definition

Building wealth using passive income has positive appeal, especially if you are troubled about being able to save enough from your day work to fulfill your goals.

How to define passive income?

Passive income includes regular earnings from a source different than an employer or contractor. The passive income can be generated from two sources: rental income or a business which a person doesn't actively participate. Examples include book royalties and dividend-paying stocks.

How to generate passive incomeYou can define passive income as earnings an individual derives from a rental property, limited partnership or other enterprises in that he or she isn't actively involved. Popular culture defines it as "any money you earn while doing nothing."

At this point, it's good to make calculations and estimates if the business is enough profitable to begin.

Business could work like this: You make an ad on the Internet, like locally visible Google Adwords campaign and ad for a local magazine. People needing moving van contact you by phone or email and makes the reservation. Customers pick up the vehicle and return it in time.

2. Flea market business

A flea market is a place or bazaar where people rent a table or shelf and sell merchandise, usually old, used things. Our local flea market is like a shop where you can rent a table and sell your things. You don't have to sell things yourself, there is staff that makes the trading on behalf of the vendor. The vendor only arranges merchandise to the shelf and collects the share of the income.

The way to make money in the flea market is to go for shopping in the morning when the bazaar opens. As one of the first the customers, vendor scours the place looking for pricing errors. Idea is to buy everything interesting that has reselling value and resell them again with a profit.

3. Drop shipping

You can also design your own shop front-end for the products.

You can also sell 3D-desings and models with the same logic than with the T-shirts. If you design a phone holder or a keychain. You can sell the model through services like Turbosquid, Shapeways or CGTrader. If you a designer this gives you also a great way to make a portfolio with designs that are actually on sale.

Conclusion

These are ten passive income avenues, which came to my mind first. I wound may other ways to make passive income and I will write about those later. Passive income almost always includes initial work or investment. There are also risks involved, and things to consider before starting a side business that might become a source of passive income. One important thing to consider is the tax rate. It maybe that passive income increases tax rate making some business opportunities less interesting. Taxation depends on the location and the type of business or investment.

What about you? What are your favorite passive income