The term “passive income” gets thrown around a lot these days. Every online guru claims to have the secret to making millions in your sleep.
But the fact is, “passive income” is not always easy to achieve and is actually a pretty loosely-defined term. It can be different depending on who you ask and at what time of day.
For example, a quick internet search turns up the following definitions: “Passive income is an income received on a regular basis, with little effort required to maintain it.” – Wikipedia
“A passive income stream is one where, once you’ve done the initial investment, there’s little or no upkeep to that investment required to maintain the income stream.” – The Simple Dollar
Passive income is income that is not proportional to the time you physically put into acquiring it. In other words, “time in” does not equal “money out.” Put even more simply, you eventually get more than you put in.
As a physician seeking the best passive income ideas, this is a gap I’m actively attempting to bridge for myself and others. Ultimately, it’s all about the freedom to do what you want with your time.
Passive income is best described as a tool rather than a scheme. It isn’t about quitting your day job so you can enjoy life, it’s about giving you the freedom to enjoy your first passion – medicine – more fully.