“Passive income investor” and “passive income” refer to related but distinct concepts:
- Passive Income Investor: This term typically refers to someone who invests in assets or ventures with the goal of generating passive income. These investors may put money into dividend-paying stocks, rental properties, bonds, or other income-generating assets. The emphasis here is on the investment aspect—the investor is actively selecting and managing investments to generate passive income over time.
- Passive Income: Passive income, on the other hand, is any income received with little to no effort required to maintain it. This income can come from various sources, including investments, rental properties, royalties from intellectual property, affiliate marketing, or any business activities in which the individual is not materially involved on a day-to-day basis. Passive income allows individuals to earn money even when they’re not actively working, providing financial flexibility and potentially freeing up time for other pursuits.
In summary, a passive income investor is someone who actively invests in assets with the intention of generating passive income, while passive income refers to the income itself, regardless of how it’s earned.