What is a passive income and how useful is it?

  1. Intan Zhao profile image61
    Intan Zhaoposted 4 months ago

    What is a passive income and how useful is it?

    A couple colleagues have been discussing trying to get a passive income started but neither of them really knew how to get it going.

  2. dougwest1 profile image97
    dougwest1posted 4 months ago

    One simple way to get passive income is to buy stocks that pay a dividend. For example, AT&T stock is paying around 5%.  You get paid quarterly into your brokerage account.

  3. tamarawilhite profile image93
    tamarawilhiteposted 4 months ago

    Passive income is any sort of income you don't have to work for, though it may require work.
    Active income comes from a job, contracting, the work that you do.
    Passive income can take the form of interest on a savings account, investment income, rental income from real estate you own. In these cases, you may monitor the investment or make repairs to the rental real estate, but there is far less work and you can set it up to require almost no work on your part. That is the "passive" part.