Definition of Passive Income is "Income generated with minimal work from your investments such as interest, dividends, or real estate rentals."
Passive Residual Income is another term normally used by investors. It is defined by income derived from working hard once but receiving the income continuously.
The benefits of having passive income are
1. You only work one time and the income will flow in in a timely manner, be it monthly or yearly or longer
2. You can work your normal way and still earn more at the end of the day. Your passive residual income is not dependent on a 9-5 work week and can be generated 24 hours, 7 days a week.
3. Freedom to choose when and where you wish to work.
4. Create unlimited amount of income; the more you put your effort in, the more you earn
5. Create residual income for your future retirement.
Passive income is our key to financial freedom. We will be less dependent we are on our job when we have more than one streams of passive income. When our passive income exceeds our expenses, we can stop working anytime we want and can still live the desired lifestyle. That is financial freedom.
There are many passive income around that you can source.
The five ways of generating Passive Income especially for Malaysians are
1. Dividend from Investments
a. Invest in Cooperative Banks such as Bank Persatuan and Bank Rakyat
b. Bank Persatuan is new for Klang Valley area but it has been in existence in the 50s, originally in the North of Malaysia.
c. Invest in Amanah Saham Bumiputera (ASB) introduced by Permodalan National Berhad (PNB)
2. Income from Investment in Unit Trust.
There are many reputable Unit Trust available in the market organized by Unit Trust companies such as Public Mutual, CIMB Wealth Advisor, MAAKL Mutual etc. They offer a variety of unit trust catering for each individual needs
3. Rental from Real Estate.
This means that you buy Properties and let the Properties out to tenants. The consistent rental from will give a good source of passive income.
4. Royalties from publishing a book
Writing a book will enable you earn commissions from the publishers. Royalties is another good source of income as you really work one time. If your books have lots of information that people need, they will be utilized, searched, bought and printed repeatedly.
5. Internet Marketing
Internet Marketing has been around for the last 10 – 15 years. The demand is very good as people always search for information eg where to buy things, do internet banking transactions etc.
For more information on passive income, feel free to go to http://InvestInEast.com.