What is passive income? It can be tricky to pin down exactly what qualifies as “passive,” so I’ll let someone more qualified than me give you a working definition.
“Passive income is an income received on a regular basis, with little effort required to maintain it.” - Wikipedia“It’s all about working hard now so you can reap the benefits later.” – Pat Flynn
For me, 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.
With all the different forms of passive income, this definition serves as a way to measure whether a certain method is worth my time. When in doubt, I simply put it up against this last statement to see if it fits the criteria.
Now, I’m a realist. I realize nothing in this world is handed to you. I know that creating streams of passive income is neither easy nor immediate. It takes time, smarts, and guts, but the payoff is well worth the investment.
You see, I am on the path to a very gradual retirement. I’m not looking at a date thirty years from now and saying, “Boy, can’t wait to get there and begin enjoying my life!”
I’ve committed a good amount of time to medicine, and I’d like to continue my practice as a doctor. But I also want to have more flexibility in life. I want to be able to spend more time with my family.
Ultimately, 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.