Active Income, Passive Income

Author: Chapo
Filed under: Finance
Date: Apr 1,2009

“Money, get away. Get a good job with good pay and you’re okay.”

That’s the intro from the song “Money” of Pink Floyd. Its curious, it sounded like my father too when I was a kid. But do you really need to get a job and work to earn money? Now we are in a new era, the information era. In the information era its so easy to earn money with such little work that you literally can earn money while you are asleep.

This is call “Passive Income”, passive income is when you earn money without working, instead, your money works for you! Imagine that you can travel around the world knowing that your business is working perfectly. Sounds pretty cool right? But the best part its that is true! Many people are living like that! They can do whatever they want, doing whatever they like, and getting money from their business! But wait, first of all i just want to clear something, THERES NO FREE OR EASY MONEY, OR GETTING MONEY WITHOUT WORKING! The thing here is that when you depend from a job, you are living like this: Working–>$Money$—>(Shopping, Family, School,etc)—>Working—>$Money$ and the circle starts again. But when you have a passive income, the circle is like this Work—-> Work—>Work—->$Money$—>$Money$—->$Money$ its sounds good right? Now, the first thing is this. Where am I? How can i earn some passive income? Check this picture: Cashflow Cuadrant If you are an employee or a self employed, you are in the “active income” section, this means, that you need to work if you want to earn money. If you are in the Business and Investor section, you have a passive income. How can i have a passive income? Easy! Invest some money in financial education, and when you are ready you can look up for good business and investments. The point here its to put your money working for you! “Don’t work for money, make that your money works for you!” You can find more info in this links: