Passive income is the ultimate goal for some when they start a side hustle. But what IS passive income?

Let’s start with active income. Active income is income derived from activities performed for money. Examples are auto mechanics, tile setters, and pressure washers. To earn money, you have to fix the car, tile that kitchen, or clean that driveway. Passive income often includes some element of actual work (the “doing it” part of the job), but you don’t have to “do it” every time to get paid.

Examples of people who can earn passive income are landlords, authors, content creators and artists. To earn a montly rent, the landlord has only to collect it. The builder earns ACTIVE income, and the landlord earns PASSIVE income. Authors only have to write the book once, and each one that sells brings them some income. Likewise, photographers and other artists have to take or paint the picture, carve the statue, or design the furniture. After that, passive income can be earned from prints, replicas, and contracts with furniture manufacturers who pay a royalty or commission for each piece they sell.

This article outlines several passive income ideas you can start from home in your spare time. You may never be as big as 9-year-old YouTube sensation, Ryan Kaji ($29.5 million with 41.7 million followers in 2021), but who knows?!? The sooner you get started, the sooner you’ll start earning extra income.

Get in touch with us at Sequoyah Fund to discuss passive income ideas that might be right for you.