Passive Income OpportunitiesWhat Are Residual and Passive Income Opportunities?For the purposes of this discussion, we will use passive and residual income opportunities interchangeably. The IRS makes distinctions as to the different forms of passive income in the way they are taxed, but for simplicity's sake just assume that all forms of passive income and residual income are taxable. Wikipedia defines financial freedom as "the state of having sufficient personal wealth to live indefinitely without having to work actively for basic necessities". In order to achieve financial independence you must "gather assets, reduce liability, and manage living costs" to the point that your assets generate more income than your expenses. It is the part about not having to work actively to buy the groceries and keep the bills paid that we want to consider here as we look at residual income opportunities. Passive income opportunities were less available to the majority of us in the days before the internet tied us all together. The more traditional ways of generating residual income, which require great wealth or great talent, are as follows:
Without large amounts of money to work with, rental income and portfolio dividends are unattainable. Without huge talent, royalties and endorsements are most probably out of reach. Unless you have married very well, alimony and child support are unlikely to give you financial freedom. Today there are avenues and opportunities for almost everyone. Now when we list the most common examples of passive/residual income we can include options that are feasible for everyone:
We will explore these last two "newer and better" passive income opportunities in depth, and as we do we will also introduce the concept of building a Recession Proof Business! Optional Links . . .Contact Us!
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