What is Passive Income

"If you don't fine a way to make money while you sleep, You will work until you die," - Warren Buffett

There are two different type of Income:

1) Active Income - Example - Salaried employee

2) Passive Income - Example - House Rent from your rented property

Definition : 

"Passive income is income that is earned from rental property or an enterprise in which the investor is not actively involved."

How It works:

Example Passive Income : 

1. Interest income
2. Dividend income
3. Rental income
4. Royalty income
5. Gift received from person other than relatives
6. Income from winning of lottery, puzzles, batting, horse races etc
7. Income from capital gain
8. Sell ebook
9. Creating online course
10. And like all such income from any source that do not require physical and or mental exercise

Why Its Important:

Passive income is quite possibly one of the most important and central ways that the rich get richer. It’s how you detach your ability to earn from the time that you do have in a day. If you’ve ever heard the term, "If you don't fine a way to make money while you sleep, You will work until you die," - Warren Buffett,  With passive income, you do make money while you sleep. You also make money while you’re awake. It’s automatic and simply keeps coming in.