Quora Answer: Where Can I Learn about Passive Income?

The following is my answer to a Quora question: “How can I learn about passive income?” 

When people talk about passive income, they tend to include portfolio income, which is generally thought to be distinct from passive income, according to the tax authorities.  I am assuming that you have the financial means to engage in these activities. 

With regards to quintessential passive income, there is rental income and business income.  For the former, you need to understand the rental market, and the legalities and financial options of owning such property.  There are a multitude of online courses that purport to teach that, but most of them are either scams or teach you things you can discover for yourself, through basic research for free. 

With regards business income, you need to know how to discern a viable business plan from optimistic sink holes, which most are.  Again, there are no courses online.  You need to learn, to make mistakes, to learn from other people’s mistakes, and to make it up as you go along.  Along the way, you will eventually learn the ins and outs of running a company, and your rights as a shareholder and non-executive director. 

If you are talking about portfolio income, which is investments, it is better to find a good financial services consultant, whether a broker, an agent, or wealth manager, to do so for you.  Finding such an advisor is likely to be a quest in and of itself.  There are a lot of consultants, but few are that good, and you want the very best.  The very best is not necessarily the best salesman since it is easier to be a product pusher.  What you need is someone with the skills of fund management.  Like the previous example, online courses are a waste of money.  If these people knew how to make money from this, they would not be pretending to be experts selling “secrets” of investing.