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Joined 11 months ago
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Cake day: August 15th, 2023

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  • You say it like my definition is the weird and unconventional one. The term literally says “passive” income. The conventional definition is “you did something once and profit from it over time without putting any or very little effort”.

    In case of your weird and unnatural example, if the sale process is automated, and you can go do other work in the meantime or just sit in an arm chair and sip beer while watching TV, then yes, it’s passive income.

    Your example also implies that you had some other income to sustain you while you were working on these widgets and you shifted the income from what could’ve been active income to be passive income later.
    In other words, you invested into these widgets and are now receiving dividends.




  • No it’s not. It’s “definitionally” income that’s passive, i.e. you’re not actively doing anything for it (any more). In other words, you can put a some or a lot of work in advance and then receive income over time, passively. A short list of examples:

    • royalties from intellectual property, like books, music, acting, patents etc.
    • automated business, where it’s developed to the point that requires almost no input
    • ad revenue from online content, like websites, blogs, vlogs etc

    As a software dev I know what it entails. It can be your job AND your passive income.