Not All Income is Created Equal

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As I’ve indicated many times in the past, one of the common characteristics of self-made millionaires is that they generate income from multiple sources. In fact, 84% of the self-made millionaires in my Rich Habits Study had three streams of income.

But, not all income is created equal. One or more of those streams of income were what’s called passive income. Passive income is income that you do not have to work for to generate income. It is automatic income.

An example is an annuity. An annuity is an investment that you make at some point which grows over time which eventually generates a stream of income. Other examples include: rental income, dividends, interest, capital gains, book royalties, ad dollars from a blog or website, income from a phone app, licensing fees, franchise fees, revenue from the sale of a business, silent partner income, etc.

Think of passive income as any investment that generates income down the road. It is an income stream that is commonplace among self-made millionaires. Passive income is working for you all the time. If you’re not making money when you sleep, on the weekends or on vacations, it will be very difficult for you to become financially independent.

 

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Thomas C. Corley About Thomas C. Corley

Tom Corley is a bestselling author, speaker, and media contributor for Business Insider, CNBC and a few other national media outlets.

His Rich Habits research has been read, viewed or heard by over 50 million people in 25 countries around the world.

Besides being an author, Tom is also a CPA, holds a master’s degree in taxation and is President of Cerefice and Company, a CPA firm in New Jersey.
 
Phone Number: 732-382-3800 Ext. 103.
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