Passive Income Earning Potential
We recently received a question from a reader on passive income.
What percentage of American income earners make over $100,000 yearly on passive income alone?
-Luther Wilson, Wichita, KS
Luther, to my knowledge nobody has really tracked that yet, so the exact answer is difficult to define. It may not be long before somebody studies it, however, because opportunities with Internet blog advertising have made “passive income” the new buzz phrase. With all the other types of passive income out there, it is easy to imagine a scenario where a savvy earner racked up six figures each year. In fact, with a little innovation a person could create a scenario where there is limitless income.
Passive income basically consists of any earnings a person receives from a venture in which that person is not actively involved, like rental property for instance. It is important to keep in mind, however, that the term “passive income” is a bit misleading. Every type of income requires some amount of work, at least in the beginning (though sometimes the work is done by others). Although we can’t specifically answer your question, we’ll use this as a launching point for a discussion on types of passive income and how to earn it. Specifically, we’ll discuss a scenario that could net more than $100,000 in passive income.
November 8th, 2007 at 1:14 pm
[…] Helen Cotton wrote an interesting post today onHere’s a quick excerptWe recently received a question from a reader on passive income. What percentage of American income earners make over $100000 yearly on passive income alone? -Luther Wilson, Wichita, KS Luther, to my knowledge nobody has really tracked … […]
November 8th, 2007 at 2:43 pm
[…] recent reader question started us down the road of passive income. One of the most popular types of passive income is the […]