Passive income is a cash stream that you can produce with minimal continuous effort or commitment. To put it in simple terms, it’s really about making your money work for you instead of the other way around. Passive income can be generated after some upfront capital, time and effort. The concept is that eventually, you’ll have a relatively steady stream of funds without being actively involved on a daily basis.
It’s important to know your own financial goals, risk tolerance, and time commitment before choosing the right investment opportunity for you.
Earning dividends is one of the most popular ways to make passive income using the stock market.
Dividend income is money paid to shareholders of stocks in the form of cash.
Every quarter–or sometimes monthly–companies that have dividend-paying stocks issue dividend checks to stockholders.
You can reinvest those dividends to buy more shares of stock. Or you can take the money as a paycheck and live off of it if you don’t want to invest in the stock market further.
Whenever you invest money in the stock market, it’s important to do your research or talk to a financial advisor.
Investing in dividend stocks and exchange traded funds (ETFs) is one of the most popular ways to build wealth and create a stream of cash flow.
Why do you need Passive income?
Generate stream of Cash flow
Financial Independence Build wealth potentially faster.
Freedom and Flexibility Allows you to manage your debt Enhance your lifestyle Enhance your retirement savings
