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Maximizing The Ratio Of Income Earned To Time Expended.

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Total visits: 163
Posted on: 23rd Feb 2015
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Maximizing the ratio of income earned to time expended is passive income. In its simplest form passive income is when money comes in regardless of whether you are asleep, on vacation, or in a coma. Its close cousin is semi-passive income which is when money comes in all on its own but you have to do a little bit of work now and then to keep it coming.

Some examples of purely passive income are:

Interest on bank deposits or similar;
Dividends on equities (stocks);
Royalties on published books or music or softwares.
Income from a website that automatically sells an electronic product or service.

Some examples of semi-passive income are:

Rent from property; An investment in a business where you are a silent (not involved) partner; Almost fully automated businesses, especially web based; Connecting two parties with separate needs and taking an ongoing cut of the profits for a multi-year period.

Earnings from internet advertisements.

From a lifestyle point of view, you should be aiming to derive as much passive and semi-passive income as possible, for the simple reason that it preserves your most valuable asset � your time.



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