For one thing, as most successful people in the Philippines do, passive income is among the key factors to financial freedom. Passive income, as opposed to the active income, is a form of cashflow that do not directly need a steady and hourly work and task to be accomplished in order to earn. It is considered by some as money working for you. It is perhaps one of the key steps to financial freedom. The money comes while you sleep. If this is what passive income really is, then building passive income is indeed important to reaching our financial goals and why it is best to start now.


Passive income is income requiring no effort to less supervision and management by the recipient to maintain cash flow received on a regular period of time. It is a form of income that bears less effort to the recipient of the earnings, as compared to the active income. Among the most common of passive income ever utilized or built for the purpose of earning is as follows:


  1. shared profit for business like farming, etc.
  2. profits from startup capital lending paid as income per shares
  3. rental income from real estate
  4. interest income coming from bank account
  5. royalties from writing books, music, or patents
  6. blogging
  7. affiliate marketing
  8. dividend from owning securities like stocks, currencies, ETFs, precious metals and bonds
  9. property appreciation and increased market value over time


Having at least 5 of these passive income source can build wealth in the long run. Having passive income means an alternative means of income when the active income, ex. job, is hampered by unexpected events like sickness and emergency. The passive income provides the power of focus to individuals that enable them to build more wealth now by focusing what needs active effort on a daily basis. Such opportunities are viewed to reduce dependence on working for a living to becoming financially independent in years to come. We mention years to come, since the best way of starting to build wealth is now, and not when you are about to retire. The power of compounding is on the side of the individual that invest early on in life. for example, taking a carefully thought plan to invest on potential business startups for a passive income from income from shares will become consistent as the company progresses. Real estate will have expenses such as annual tax and depreciacion, but finding a renter means a monthly passive income under minimal landlord task via one time deposits and payment contract. The possibilities are even found in the digital world.


Blogging depends on page visitors and the reach of your contents. Having a huge traffic on sites developed will mean great potential for monetization. The audience of world wide web hungry for quality content is increasing. Knowing that blogging is a good way to start passive income, one can realize that having enough and credible articles or post can be the starting point for blogging profitability and building a good passive income.


Patents are also a good source of passive income. Intellectual property is not free for all, since due credit must be given to the owner of the patent, and being one of patent holders can mean good revenue source. For creative and scientific minds, royalties from such passive income is for you.


Stock market articles flood the internet. Some provides hype, while others teaches the ins and outs of this market. Although trading and investing had earned some separation of terms of activity, passive income comes into play for those that understand the market forces, and letting long term investments do it’s magic. A kind of passive income that earns money, without you thinking about and pouring your time to earn, this requires the right emotion and mindset. Taking your money out so soon can mean lesser passive income. Yet prolonging the withdrawal from the stocks during bearish times would lead to losses. Passive income does not need to become ignored, but rather as intelligently timed and played.


Affiliate marketing is a passive income that directs leads (potential clients) to affiliate sites. Amazon affiliates is an example. In the Philippines, Lazada affiliates is an active proposition among local bloggers and web admins for building passive income, to cover for the expenses of maintaining their sites if not for the sole purpose of building passive income now. Instead of developing your own product an directly compete to the active world of marketing, selling product leads by audience clicks is a passive income that can start to build your wealth.

By techno

Techno is an IT professional dedicated to providing proven reviews and insights to technology. With constant exposure to the latest innovations, technical interpretation is given in specific manner yet, also provides digestible exquisiteness of the topic in various fields in IT, Business, and Lifestyle.