 What is passive income and how to build a passive income? Let me start explaining actually how most people misunderstand the meaning of passive income. Basically there are two types of incomes passive and active. Active income is by working to get paid basically exchanging your time for money with working like working as an employee or as a business owner it doesn't matter actually. And second one is to generate passive income earn money while you don't have to be prison at the workplace but you still need to do some work. Okay when people hear the word passive income they think that okay sitting on the beach watching the sunset and collecting money that's not true. Passive income is an income that you do not fix the time but you will still work on it and the amount of time that you work on it is actually flexible. Sometimes you have to work two hours a month on a passive income and that income keeps flowing in and you're collecting cash. So which one do you like to stop? Passive income or active income? Well it's presented this way I'm pretty sure you would go for passive income right? Here is the harsh reality you should know. There is no direct road to passive income unless you are born in a very wealthy family. You will have to first earn money actually in order to put that money into work and generate passive income streams. That's what I call the active road to passive income. Go active before you go passive. There are two ways to do this. Work and invest or build to harvest. Let me show you how you build your passive income this way. If you go for work and invest. Okay you go all out on maximizing your active income first. Fully speed ahead. Choose a job or start a business where you get paid well for doing what you love and doing what you're good at actually. Work as hard as you can or work as smart as you can to make a short cut to get rich. Track your income you generate as well as your expenses. Only if your income exceeds your expenses you can have the capacity to invest. Invest into real estate, stocks, bonds and start generating passive income streams. From rental income, dividend or compound interest. Each of these investment categories have risk associated with it. You might be temporarily left without a tenant for the building that you own and the stock shares might fluctuate. Most passive income therefore has some volatility. The key element in this active road to passive income is income versus expenses equation. Develop your skills to maximize your income and minimize your expenses. Postpone buying that expensive car delay taking that expensive holiday. Once you build the capacity to invest and start your own business to generate some passive income flowing in and you're collecting cash, that time you always have the ability to buy that expensive car or taking that holiday later. If you always spend more than you earn you will never build passive income. That is the harsh reality. The second route to build passive income is to build and harvest. This is similar to the first route but it does take a lot of hard work upfront. If you start a YouTube channel with engaging content that you can excite your viewers, you could build an online course to educate people online. You could write a book or any other creative content actually. None of these have guarantees for your success. Once again, focusing on things actually that you are good at and enjoy doing is the key. From these building activities you may be able to generate a steady and ever growing income stream. You can harvest earnings over the years of your work that you have done upfront. Which one is the easiest way for you to build passive income? Work and invest or build and harvest? Please comment below. If it's your first time watching my videos, please subscribe to the channel, hit the like button and I will see you in the next video. Thanks and have a good day.