Generating a Passive Income Source

[raaman]

Passive income appears to be one of the best methods to earn money. Passive income appeals to many people today. It is because it needs minimal effort on our part to generate revenue. This type of passive income is also called as "making your money work for you." In general, you put your money in a product or service, and it will start to generate revenue for you again and again.

However, you should be well aware that passive income is also taxable. Nevertheless, you should not let the tax aspect prevent you from generating a passive income source for yourself. Passive income is taxed differently than active income, but it is still taxable, so be aware of it before investing.

 

[Mika]

Passive income is of course taxable but you pay more taxes on your active income compared to passive income. If you are generating passive income through investment, you will be paying more taxes compared to passive income that you are generating by selling products and services. In most cases, passive income from real estate (rental income) also has comparatively smaller taxes. You can either invest to generate passive income or create your own products and services to generate passive income. It takes a long time to generate passive income

 

[Jasmine]

Well passive income means you make money with minimal effort or no effort at all. However, for this to happen, you should have worked really hard in the past or have invested a lot of money. I make money from my blog. Do you realize how many hours of every day work I put into my blog and many many months, or even years, I continued working on my blog to be able to generate passive income. I make passive income from ebook, do you realize how much I went through to earn?

 

[Suba]

Almost all countries apply income tax to passive income, of course at different rates. The aim is to reduce social inequality. Meanwhile, many rich people have acquired assets that create passive income such as shares, property, crypto, etc. But for investors like us who only have a small passive income, of course they will only be subject to a small amount of income tax.

 

[btaliat]

There are different steps and cautions to be taken for someone that wants to generate money passively. The inability to take this caution has made different people to lose much money while trying to make money passively.

The first thing to do is to research on the passive income that we might have chosen. This will give us the knowledge of how it works, what to expects and what not to expect.

And also, we need to ensure that we have some duration for the investment. This will let us know the target amount to be expecting from the investment.