SmartReads - Passive Income: Do What You Want When You Want And Make Money While You Sleep

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Many people dream or strive to have the lifethey desire; to be able to resign from their 9 to 5 jobs and live alife in where they can spend more time with their families andfriends, pursue other interests, travel the world, and still havefinancial security behind them. Unless you are one of the very fewborn into this plush lifestyle or come upon it because of aninheritance, then this book is a great start to helping you learnhow to make extra money.

Money is not dirty or evil, as most peoplewould have you think. Money does not bring happiness or sadness.Money is neutral, like everything. It is how we choose to use itand how we choose to live life that makes all the difference. Moneydoesnt bring happiness, for that is a state of being that eachindividual must create for him/herself. However, money certainlymakes life easier and more comfortable.

The truth is, money is necessary, today morethan ever. It will be extremely difficult trying to avoid using it,unless you have created a totally self-sustaining area of your ownout in the wilderness somewhere. Some people like to live away fromthe crowds but others love the city life. It all depends on theperson. No matter how you choose to live, the reality for prettymuch all of us is that we need money.

In this book we will discuss how you canmove away from the 9 to 5 routine forever and begin expanding yourawareness in creating a passive income stream that will bring a newand better reality.

What would it be like to not worry aboutwhether or not you are going to pay the electricity bill? Whatwould it be like not having to worry about whether or not youllmake the mortgage or car repayments or how much will be left afteryou do?

Got elderly parents who might need to bemoved into an aged care facility soon? Of course, you would wantthe best care for them. A lot of situations can catch people offguard especially those with financial consequences they arentprepared for.

Perhaps youve wanted to travel the world ordreamed of getting a new car. Whatever it is you desire for yourlife, it is my intention to help you learn through this book how toset your goals and change your mindset in order to begin making thechanges that will bring forth a new lifestyle. Anything is possiblewith the right vision, effort and time.

We will begin by assuming you know verylittle, or even nothing at all, about the subject of passiveincome. It is important to understand from the beginning that thereis a bit of work involved. However, you will start to see addedincome accumulating passively. The work you put in initially willbe well worth the rewards you will receive once your passive incomestarts to work for you. Passive income does not require muchmaintenance or management once it has been established, and moneywill start rolling in without you even realizing it.

CHAPTER 1: ACTIVE VS. PASSIVE INCOME

Before we begin, it's important to mentionthat all income, including passive income, must be declared, andthe IRS still needs to receive their share since it is taxableincome. There are differences in the way the IRS treats passiveincome, however.

If you Google passiveincome, Investopedia defines it as "any earningsindividuals receive from a rental property, a limited partnership,or involvement/endeavors where the individual is not materiallyinvolved." The definition of passiveincome in popular culture, however, is slightly different anymoney you earn while sitting on a beach sipping drinks. Again,before you get to this stage there is work to be done.

Three main types of income exist:

• Active Income

• Passive Income

• Portfolio Income

Active Income

This is also known as an individuals earnedincome. Most people have this type of income where they work orprovide a particular service in return for payment. This wouldinclude salaries, wages, tips, commissions, or income from materialinvolvement in a business. Its basically compensation from yourplace(s) of employment. Active income is taxed the highest. It isalso taxed to provide social security and Medicare. Most peoplewill know that the pay they actually get after taxes is in manycases almost half of what they actually make.

Portfolio Income

This type of income hails from investments,dividends, interest, royalties and any capital gains. A portfolioincome is taxed differently but is not taxed for social security orMedicare payments.

Passive Income

The easiest way to describe passive income isto say it is money earned consistently with very little to noeffort on the part of the individual receiving it. Some verypopular passive income methods come from interest earned,retirement earnings, or stocks. They could also be lotterywinnings, online work, or capital gains. Passive income takes sometime to begin working for you, unless of course, you are luckyenough to actually win the lottery.

Outsourcing Income

Go on Google and search for moneymakingactivities. You will see there are many different hubs you couldchoose from. These are sites that promote different things on yourbehalf and you can sit back, relax, and watch what happens. Whichone should you choose? That would be up to you once you havedecided who your target audience is. The passive income yougenerate will depend upon whatever market you decide to gointo.