Essentially, passive income is money acquired without using your personal exertion . It’s income that is not linked to hours worked. If work is required, it is usually done one time with the money paid multiple times.
There are two forms of passive income:
Income derived from business and income derived from investments. Business income is the money that one receives without actually needing to work in the business.
One acquires a business that is either run by someone else or is self sufficient. The profits generated are taken out by the owner thus yielding passive income.
Robert Kiyosaki is the most famous advocate of this principle and has been teaching it for decades, read Rich Dad Poor Dad .
Income derived from investments is making money from money. Instead of you working for money, it is putting your money to work for you. depending upon the investment, a rate of return is realized which generates passive income.
Examples of this are dividends from stocks, appreciation in real estate, interest on savings, etc…
The wonderful aspect of this type of income is that the money is created regardless of one’s efforts. If you don’t show up for work, the income still exists. You will earn the same while at work as you would sitting on the beach. In addition, this allows one to increase their overall efforts.
If your money is working while you are focusing on something else, you are, in effect, paid twice for your time. This is called leverage and it’s easy to see how it is possible to create massive wealth under this scenario.
Focus your attention on creating passive streams of income. It holds the key to all financial freedom.
Gold is a good first subject. It is also one of my foundation investments.
I think it is the one investment that can get you out of the central bankers game. It is also what the elite bankers and tycoons hoard and trade among themselves.
The IMF has at it's core a gold foundation.
Daily you hear reports of the price of gold going up or down. I tend to view the world differently. I feel that gold is always gold. The only TRUE money. The rest out there is "currency".
The value of the currencies is what goes up and down and not gold.
Some other quotes about gold that I remember being told:
"Gold must be bought" - Roman saying
"He who owns the gold rules" - Not sure who said that first.
As for what I like to buy .... 1 oz. gold coins. I prefer Canadian Maple Leafs since they are 24K gold.
I have in the past bought US 22K however I am heading toward all 24K.
I stay away from Chinese Panda coins.
Kruggerands are popular but are not very pretty as a coin. I really feel gold coins ought to "look" appealing. Remember though that I don't buy for numismatic value. Only for the value.
I will add more info about gold here as I come across it.