Passive income -
Everything You Need To Know

💡 What you’ll learn in this guide:

• A clear definition of passive income and the three rules that make income passive.

• Practical starter steps you can do this week to create recurring income.

• Which of the 7 income‑producing asset classes fits your time, money and risk tolerance.

What is passive income?

Driving Uber is not passive income. Passive income is money that keeps coming in even when you’re not actively working. It’s created by owning and employing income‑producing assets — things you buy or build once and that earn repeatedly. The goal is to generate systemized efforts that compound into consistent cash flow so you can reclaim time.

The three rules that make income passive:

1. Income comes from an owned asset.

2. Income is recurring and sustainable (repeatable use of the asset).

3. Maintenance requires minimal time; you could ignore it for an extended period, and returns keep coming.

Passive Income is the ultimate money cheat code because it buys back your time and makes everything possible.

7 Classes of Income Producing Assets

Assets that produce passive income fall within these classes:

Which asset class is right for you?

We categorize income-producing assets into seven practical classes. Each has tradeoffs of time, capital, and risk. Your skill set offers distinct advantages for each type. Read the full hub for the breakdown and detailed explorations: 7 Classes of Income‑Producing Assets.

Quick picks:

• Low time / low skill: Debt Asset Class (bonds, CDs, notes)

• Low time / higher scale: Digital Asset Class (monetized sites, SaaS)

• High capital / moderate skill: Physical Asset Class (rental property)

Passive Income FAQs