What is Passive Income?

When we walk through Mr. Robert Kiyosaki (Rich Dad Poor Dad), He gives us a better understanding of the Three Types of Incomes.

Earned Income

Earned Income is income where you receive a paycheck every month which helps you to fulfill your basic necessities and at the end of the month you may or may not have cash at hand to carry any investment plan this is called Earned Income. If in case you require more amount of paycheck you to work some extra hours to get the extra income.

Portfolio Income

Portfolio Income is where you earn income by exchanging time for money, it is made through capital gains for instance when you buy stocks at say 100/- Rupees and suddenly the stocks you purchased the company sells the stocks at 500/- Rupees which is a capital gain.

So if we purchase any stock at 10/- Rupees and the same stock we purchase goes up which means the amount of profit we receive is capital gains which is the profit.

Passive Income

Passive Income requires a little effort or a minimal work than Portfolio or Earned Income Interest, Dividend & Real Estate can help you earn passive income.

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