Passive Income 1 -- What does it mean

(I am going to write a few articles on Passive Income -- this is the first part of a multi series blog.)

I started to understand the meaning of passive income when i read "Rich Dad Poor Dad" the best seller by Robert Kiyosaki. After having read that book i have read many of the Rich Dad series-- and to be honest -- I liked them a lot. If you havent read them already-- please do-- I highly recommend it.

Passive Income is defined as Income which you will continue to receive even if you do not do any work. Your job, your bussiness doesn't generate Passive income.

The test of understanding passive income is to ask-- if you stopped working or going to office-- will you still get income?

If the answer is NO-- then it is "Active Income".

If Yes-- then it is "Passive Income".

Some good examples of Passive Income are--
- Royalties from writing books, songs,
- Income coming from rental-- continously
- Income from Network Marketing firms-- Amway, Tupperware
- Income from sale of an Insurance Policy
- Income from creating a Network --- any type of Network.

I hope this makes things clearer.

The areas where I am planning to try my hand at generating Passive Income is
-- Income from creating a Network.

more to come as i delve into this deeper.

( if you like this post-- please leave a comment)