Passive income definition 

What is passive income?

Last updated 21.11.2021

Let's start with an Statement of the term "passive income":
Passive income is the generation of income without long-term regular, active involvement.
The prerequisite for this recurring income results from a one-time effort in the form of labour or capital input, as well as energy.
It is important to know that passive income generation does not happen overnight, but is built up over a longer period of time.

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What does passive income bring? Who is it suitable for?

Passive income is suitable for almost all of us, no matter what goal is being pursued or what stage of life we are currently in.

  • You would like to increase your salary in the long term?
  • Are you looking for more independence or additional freedom in the way you live your life?

An additional source of income in the sense of passive income may be just what you need.

How do I generate passive income?

There are many ways to create a passive source of income. Depending on what you value most and what kind of effort you want to invest, there are different options.
Depending on where your talents and skills lie and what you enjoy doing, there are many ways to create a personal definition of passive income:

  • Are you online-savvy? Perhaps your own blog, for example, which generates income through cooperations and advertising, is an exciting option.
  • Are you into technology? Maybe lending or staking in the crypto sector is just the thing for you. 
  • You have received an inheritance and would like to live off it in the long term? An exciting investment in a property that generates monthly rental income could be an option for you. 
  • Are you ready to invest capital in shares? A dividend share strategy could be a route to passive income.

The definition of passive income is thus not uniform. Depending on how much time you want to invest, how much capital is available and where your personal strengths lie, the explanation of the term passive income differs. 

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