Residual Income The Power of Passive Income:

Residual Income The Power of Passive Income: Passive income is a term that has gained popularity in recent years, especially among employees and business owners who are looking to secure their financial future. In this subchapter, we will delve into the concept of passive income and why it is crucial for those ready to retire. Passive income is money that is earned with minimal effort on the part of the earner. This can come in various forms, such as rental income, dividends from investments, royalties from intellectual property, or profits from a business that does not require active participation. The key difference between passive income and active income, such as a salary or wages, is that passive income continues to flow even when you are not actively working. For many employees, the idea of passive income may seem like a pipe dream, as they are conditioned to rely solely on their paychecks for income. However, understanding the power of passive income is essential for ensuring financial stability in retirement. When diversifying income streams and creating sources of passive income, employees can build a safety net that will continue to support them even after they stop working.