Passive Income Helps Create Financial Security
Passive income is not the money from your paycheck that you earn from your employer. Instead, passive income is money that you earn that takes little to no effort to maintain but most times requires you to put in the work upfront. This means you have to be active and intentional about building something that will create passive income for you.
With passive income, you have extra financial security even if you have a primary job. If you were to lose your job, then your passive income could be a way to help you pay for your bills and other expenses without having to worry.
Several examples of passive income streams can include dividends from stock earnings, rental property income, book sales, and high-yield CD or savings accounts.