Paid vacations are one of the things that every employee looks forward to in each year of work. We break our backs everyday at a job we don’t even like, comforting ourselves with the thought that in a couple of months we will be eligible to have a vacation with pay. However, is it truly possible for us to go on vacation anytime we want, and still manage to rake in some money in our pockets while sipping pina colada in Hawaii? The answer, is most certainly a yes. So how is it done?
First of all, this occurrence is very common among the rich. And it’s not because they are already rich that’s why they can manage to go on vacations whenever they want, it’s about how they created that privilege for themselves in the first place. The answer lies in a thing called “passive income”.
Basically, there are two types of income, active income and passive income. Active income means money comes to the hands of the person out of doing work actively. This could mean doing any type of work in a job, while exchanging effort and time for money. Passive income on the other hand, comes into the hands of the person even when the person spends little time and effort on the activity.
Obviously, active income is where employees fall under. They go to a 7-5 job, and if they absent without reason, they don’t get paid. And the only way to get more money out of the job is to do overtime work, which is again exchanging time for money.
Passive income is something that investors, and the rich have. Even if they’re playing with their kids or vacationing in a deserted island, their money keeps working for them. Passive income can come from sources such as property rentals, royalties for creative material, recurring sales in a business, and even sales with a blog or website you happen to own. There are various sources of passive income, and this is the secret that people have to learn to be able to be financially free.
Ironically, people often work for active income, not realizing that passive income is the true goal of financial wealth. To sum it all up, active income is when you work for money, while passive income is when money works for you.
Even if you’re enjoying sushi in Japan, yachting in Greece, and enjoying the sun in the Bahamas, your money keeps working for you, and you still get paid. So is earning money while on vacation possible? For sure it is. Even if you decide to live in the beaches of Brazil forever, you can still have money in your pocket.
