What exactly is passive income?
It’s one of the most popular terms in finance — but often misunderstood.
In this clip, Nischa Shah explains what passive income really means 💡. She shows why most streams aren’t truly “passive” at the start, and why investing (like the S&P 500 📈) is still the easiest way for everyday people to begin.
🔑 Other Passive Income Ideas
📈 Financial
• Dividends → payouts from company profits just for owning stocks
• Bonds → lending money to governments or companies for fixed interest
• REITs → invest in real estate portfolios and get rental income shares
• Covered Call ETFs → funds that generate monthly income by selling options (📈 See TSLP at KurvInvest.com)
🏡 Real Estate
• Rentals → buy a property and collect rent, managed by others if hands-off
• Crowdfunded Deals → invest small amounts into large property projects online
• Triple Net Leases → tenants cover taxes, insurance, and upkeep = pure cash flow
💻 Online
• Royalties → earn from books, YouTube, music, or stock photos long-term
• E-commerce → automate sales with Amazon FBA or dropshipping
• Websites → buy or build sites that make money from ads or affiliates
• SaaS Tools → subscription-based software that runs itself once built
⚡ Alternative
• Crypto Staking → lock up coins like ETH or ADA to earn rewards
• Royalties → buy rights to music, patents, or films and get paid whenever used
• Litigation Finance → invest in lawsuits and profit when cases settle
🛠️ Business
• Small Business Equity → silent partnerships where you share in profits
• Car Washes / Laundromats / ATMs → semi-automated, steady cash flow businesses
• Franchises → own a brand location, hire managers, and skim the profits
👉 Most “passive” income takes effort upfront, but once built, it can grow with less work and more freedom. 🔑
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Source: Nischa Shah: They’re Lying To You About Buying a House! My 652510 Rule Built $200K Passive Income! by @TheDiaryOfACEO
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