Traditionally, men worked on farms or in trades and women raised the family. The industrial revolution introduced the manufacturing sector and established a set workweek. WWII introduced women to the workforce, and the 1970s introduced them to a life outside of the home. The 1980s introduced the two income family, or latchkey family. The 1990s introduced work-at-home, and outsourcing.
The natural evolution has continued introducing passive income in the last five years. Today's passive income varies from earlier forms. Passive income was first introduced in dot-com revolution. When that crashed, thousands of people tried to use Google as a tool to generate income. They created dozens of schemes that all failed, or if they didn't fail, collapsed when Google recently closed the accounts of many 'made for Google' empires.
In fact, there is even an online game, secondlife.com, that allows users to buy and sell goods, services, and property. In fact, the US government is currently looking into whether they can tax the incomes made from people who buy and sell through this game. This does give investors a unique peak into the minds of the population. People want to own property, even if they can only afford intangible, game based property.
However, there are several passive income venues that did prove to be viable, and realistically build wealth. The most prominent are bullion investing, investing in various media forms, and property investing. Of these, the most successful, and lowest risk, is property.
Britain is currently experiencing an explosion of young investors making a fortune in the buy-to-let market. Despite four interest rate increases in less than one year, and house prices rising about $50 - $80 US a day, many young investors are learning how to build their property portfolios, even without more than a single down payment.
This type of passive income is viable. It is possible to make a living from 4 - 6 properties, if they are located in the right areas. Some investors are very hands on, but using agents can take the stress and confusion out of building a property portfolio.
The concept of passive income confuses many people. Many people start a second business to build a passive income - totally ignoring the term 'passive.' A passive income should be a stream of income that requires little work. That is why most revenue venues do not qualify.
Another common mistake is believing that all investments earn a passive income. This neglects the term 'income.' An income is a repetitious, steady, income.
Passive income is something that does not require effort on the part of the investor, and it generates a steady stream of revenue, more than a few dollars a month.
A passive income is attractive to the 60hour a week workers in this decade because their most valuable commodity is time. There is nothing in a successful person's life that is more valuable than time. Passive income is derived from a venue that may require a financial investment, but does not require a time investment.
The internet has offered substantial opportunities for investors. It connects them with tools and agents who can help them earn a passive income.
