According to Wikipedia “Passive income is generally defined as a stream of income earned with little effort, and it is referred to as progressive passive income when there is little effort needed from the individual receiving the passive income in order to grow the income.” Examples of passive income include rental income, royalty from books, and any other business activities that the earner has no material participation during the year. Passive income differs from active or income and portfolio income in a number of ways.
Active income or earned income includes all taxable income and wages that the earner gets from working, either as an employee, a businessman or as an independent contractor. For employees this may also include long-term disability benefits received prior to minimum retirement age. Linear active income is one where a person needs to stay active to maintain the income stream, and stops once the individual opts to stop working. Other examples of active income include wages, self-employment, marital participation in a corporation or partnership, etc. Portfolio income is income derived from investments, dividends, interest, and capital gains; and are subject to tax. Portfolio income does not come from passive instruments and is not earned through regular business activity.
Summing it all up, incomes may be classified into the following types:
Active – Earned income. Requires your participation. You work for your money.
Portfolio – Capital gain income from stocks, bonds, etc. and involves some risk.
Passive – Cash Flow Income – Rent, royalties, etc. This is money working for you.
One membership benefit of IMG is the Business Ownership Program. The above picture on the right side is an illustrative example of how helping just one family a week will help you achieve your goal of financial independence. This will seem difficult when you’re just starting out but will get easier as you and your team build up the momentum. In IMG you are not in business alone. You’re working with your team very much like how a sports team works together to achieve victory. If you’re looking to start a business this is the right place to do so.
IMG website: http://bit.ly/2NxILDd
Free ebook (1st 2 chapters): http://bit.ly/2LxBl2x
My FB page: http://bit.ly/2xg6GAU
Passive Income According to Wikipedia "Passive income is generally defined as a stream of income earned with little effort, and it is referred to as progressive passive income when there is little effort needed from the individual receiving the passive income in order to grow the income." Examples of passive income include rental income, royalty from books, and any other business activities that the earner has no material participation during the year.
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