when we talk about the side hustle, without realizing it, we are also talking about passive income. is a term that is familiar to investors, including millennials. It needs to be underlined that not all side hustle is included in the category of passive income. However, all types of passive income are part of the side hustle. for that, we need to know what the term passive income means first, in the most general meaning passive income is income (money) earned by a person by doing very minimal activity
Having a passive income is very helpful, especially in an increasingly uncertain global economic situation, where the impact can reach all levels of society. To understand further about passive income, let’s take a little deeper dive.
quoted from the article Passive Income: What It Is, 3 Main Categories and Examples written by James Chen for Investopedia “Passive income is earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. There are three main categories of income: active income, passive income, and portfolio income. Passive incomes include earnings from a rental property, limited partnership, or other business in which a person is not actively involved—a silent investor.“
There are 3 types of passive income which are. The first type of passive income is paper assets, for example, deposits, stocks, or mutual funds that can provide interest or returns even when you sleep.
The second type of passive income is a business that is run without you being actively involved in it. For example, a laundry business or a mini market.
Meanwhile, the third type of passive income is from rental properties. For example, the business of renting houses, boarding houses, Airbnb, and others.
with some of the examples above you can try to develop what you have as capital to generate passive income. set aside a portion of your salary from your main job for business capital investment be a silent investor, where you don’t need to run the business but you still receive the results. You can also rent out unused rooms in your home, making unused space an additional income.