Which is a form of passive income? (1 point)
owning rental property
teaching golf
wages from a part-time job
trading stocks
owning rental property
Owning rental property is a form of passive income.
To identify a form of passive income, we need to understand the concept. Passive income refers to making money without actively putting in ongoing effort and time. Let's assess the given options:
1. Owning rental property: This can be a form of passive income as it involves earning money through rental payments from tenants. Once the property is set up and tenants are in place, the income can be relatively passive, although some management and maintenance may still be required.
2. Teaching golf: Teaching golf generally involves actively providing instruction and services to students. This is not considered a passive income stream as it requires ongoing effort and time investment.
3. Wages from a part-time job: Wages earned from a part-time job are not considered passive income. This type of income relies on active participation and ongoing work.
4. Trading stocks: Trading stocks can potentially generate passive income, especially if you engage in more long-term investment strategies such as dividend investing. Once the initial research and investment decisions are made, passive income can be earned through dividends and capital appreciation.
Based on the options provided, owning rental property and trading stocks have the potential to be forms of passive income.