I didn’t understand the concept of passive income because I only earned 0.22 million dollars through real estate and stock investing. But I started to recognize the essence of passive income. My understanding of passive income is as follows:
1. Passive income is a kind of money science without physical effort.
2. It generates cash flow even while you are sleeping. It should work 24/7.
3. It should be backed by active income. It means building a successful passive income is required a strong active income.
4. Passive income is not controllable by you, so let it go for long terms with not overthinking its return, rather focus on its structure(portfolio) and system.