What does passive income mean?A short cartoon video of the story of carrying water and digging pipes

This "Pipeline Story" cartoon video is about 10 minutes long.

If you can take the time to look at it, I believe it will be enlightening?

Cartoon Pipe Story Video

"PipelineStories》Video duration:0:10:55

cartoon pipe story picture

What does the story of the pipeline illustrate?

1. What is passive income?
2. Why achieve passive income?
3. Comparison of passive income and active income.

What is passive income?

Do you know what "passive income" means?

Passive income and active income are relative.

Passive and Active Income

Active income means that you have to do something to earn income.

Passive income means that you may not have to do anything and have income.

Very passively, making money even while sleeping (laying down to make money), it is very easy to make money in this way.

Chen WeiliangA friend of mine was asked "what does passive income mean"?

• She actually answered "forced to make a living and earn money".
• After explaining to her that "passive income is not forced to earn a living", she laughed herself, hahahahahaha!

Passive Income Best Explained

Passive income is income that you can earn on a regular basis with a little effort, or even little effort.

The IRS divides income into 3 categories:

1. Active income (i.e. labor income)
2. passive income;
3. combined income.

• Passive income is defined as "income that you earn without substantial trade or business involvement."
• Other financial institutions and government agencies also recognize passive income as a result of capital enhancement, or income associated with negative gearing.Passive income is generally taxable income.

passive income metaphor

• Passive income is like a water pipe that provides you with running water on a continuous basis.
• Creating passive income channels (water pipes) will allow you to make money while lying down.

Inspiration from the pipeline story

The way for ordinary people from ordinary backgrounds to get rid of the working class is to establish channels to achieve passive income.

a lot ofSmall tradeMarketing team, also use this "The Story of the Pipeline" video as an incentive.

The truth that I realized after watching the story of the pipeline

• Chen WeiliangIn 2009 to studyWeb Promotion, adding aInternet marketingteam.
• I just watched this "The Story of the Pipeline" video.
• From this, I learned the concept of passive income, and the goal of wanting to achieve passive income (now achieved).

The Story of the Pipeline (read the full text online)

1801, small mountain village in central Italy (the story of the pipeline is real).

A long, long time ago, there were two young men named Paolo and Bruno, cousins, ambitious.

Live in a small village in Italy.

The two young men are best friends.

They are big dreamers.

They kept talking, longing for some way to one day make them the richest people in the village.They are all smart and hardworking.They think all they need is opportunity.

One day, when the opportunity came, the village decided to hire two people to transport the water from the nearby river to the water tank in the village square.The job went to Paolo and Bruno.

Both grabbed two buckets and ran to the river.At the end of the day, they filled the town's water tanks.The elders in the village paid them a penny a barrel.

"Our dream has come true!" Bruno exclaimed loudly, "We can't believe our good fortune."

But Paul Paul wasn't very sure.

His back was sore and sore, and the hands that held the heavy vat were blistered.He is afraid to wake up tomorrow morning and go to work again.He vowed to come up with a better way to transport water from the river to the village.

Paul Paul, builder of pipes

"Bruno, I have a plan."

The next morning, when they grabbed the buckets and rushed to the river, Paul Paul said, "The reward is only a few cents a day, and if we want to carry water back and forth like this, we might as well build a pipeline to bring water from the river to the village." Bar."

Bruno froze. "A pipeline? Who's ever heard of such a thing?"

Bruno yelled, "Papa, we have a good job. I can carry a hundred buckets of water a day. A penny a bucket, a dollar a day! I'm rich! In a week, I'll be able to buy New pair of shoes. In a month, I can buy a cow. In six months, I can build a new house. We have the best job in town. We only work five days a week, two weeks a year Paid vacation. We can enjoy it in our lifetimeLifeup!Ditch your plumbing! "

But Paolo is not one to be easily discouraged.He patiently explained the plan to his best friend.Paolo spent part of the day carrying buckets of water, and part of the day and weekends building pipelines.

He knew how hard it was to dig a pipe in rock-hard soil.

Because his pay was based on the number of barrels of water he carried, he knew his pay would be lower in the beginning.

And he also knew that it would take a year or two for his pipeline to produce considerable benefits.

But Paul Paul believed his dream would come true, so he did it.

Bruno and the other villagers began to mock Paul Paul, calling him "Pa Paul the Pipeline".

Bruno earns twice as much as Paolo, showing off his new purchases.He bought a donkey with a brand new leather saddle and tied it beside his new second-story building.

He bought shiny new clothes and ate delicious food at the country restaurant.The villagers called him Mr. Brono.When he sits in the sprinkler bar and buys people a few drinks and people laugh at the jokes he tells.

Small actions equal big results

While Bruno slept in his hammock at night and on weekends, Paolo continued to dig his pipes.

Paolo's efforts didn't make much progress in the first few months.

He works hard - harder than Bruno's because Paolo works nights and weekends.

But Paul Paul kept reminding himself that the fulfillment of tomorrow's dreams is built on the sacrifices of today.As the days passed, he continued to dig, just an inch at a time.

"An inch and an inch makes a foot," he repeated as he swung the cauldron into the rock-hard soil.An inch becomes a foot, then 10...20...100 feet...

"Short-term pain equals long-term reward," he reminded himself as he staggered back to his humble hut exhausted after work each day.

He measures the effectiveness of his work by setting and reaching daily goals.He knew that, one day, the rewards would greatly outweigh the effort.

"Keep your eyes on the return." He repeated this over and over as he drifted off to sleep, hearing the laughter of the villagers.

It works when the eyes are fixed on the reward

Day by day, January has passed.One day, Paolo realized that his plumbing was halfway through, which meant he only had to walk halfway with the bucket!

Paolo devotes the extra time to building the pipeline.The completion date is finally getting closer.

During his break, Paolo sees his talented friend Bruno laboriously hauling water.Bruno is more hunched than ever.The pace has also slowed down due to prolonged exertion.Bruenor was angry, sullen, resentful for carrying water all his life.

He started spending less time in the hammock and more time in the bar.When Bruno came in, the bar patrons whispered, "Here comes Bruno the Bucket Carrier."

They giggled as the town's drunks imitated Bruno's hunched posture and shuffling.Bruno stopped buying alcohol for others to drink, and stopped telling jokes.

He would rather sit alone in a dark corner, surrounded by a pile of empty bottles.

Finally, Ber Paul's big day has finally come - the plumbing is done!

Villagers crowded to watch the water flow from the pipes into the sinks!

Now the village has a steady supply of fresh water.Other nearby villages moved to this village, and the village prospered immediately.

Once the plumbing was finished, Pol Paul didn't have to carry buckets anymore.Whether he was working or not, the water kept flowing in.While he was eating, water was flowing.When he slept, water was flowing in.When he went to play on weekends, the water was flowing.The more water that flows into the village, the more money flows into Paolo's pocket.

Plumbing man Paul Paul became famous, and people called him a miracle worker.Politicians praised his vision and implored him to run for mayor.But Paul Paul knew what he had accomplished was not a miracle, it was just the first step in a big, big dream.

Did you know that Bo Paulo's plans go far beyond this village.

Paolo plans to build pipelines all over the world, recruiting his friends to help.

The plumbing forced Bruno out of his job.

Seeing his friend begging the bar owner for free drinks, Paolo felt bad.So Paolo arranged a meeting with Bruno.

"Bruno, I'm here to ask for your help."

Bruno straightened his back, squinted his dull eyes, and said hoarsely, "Stop mocking me."

"I'm not here to brag to you," Pablo said. "I'm here to offer you a great business opportunity. It took me two years to build the first pipeline. I've learned a lot in those two years." I knew what tools to use, where to hollow out, how to run the pipe. I took notes along the way. I developed a system that would allow us to build another pipe, and then another...another..."

"I can build a pipeline a year by myself. But it's not the best use of my time. What I want to do is teach you and other people to build pipelines...and you teach other people...and they teach other people ... until every village in the region is covered with pipelines ... and eventually every village in the world has pipelines."

"Just think about it," Pablo continued, "we only need to make a small percentage of the water that goes into these pipes. The more water that goes into the pipes, the more money goes into our pockets. I The pipeline built is not the end of the dream, it's just the beginning."

Bruno finally understood the grand blueprint.He smiled and held out that rough hand to his old friend.They held each other's hands tightly and hugged like long-lost friends.

Plumbing Dreams in a Bucket World

Many years have passed.Paolo and Bruno have been retired for many years.Their global plumbing business pumps millions into their bank accounts every year.When they sometimes traveled across the country, Paolo and Bruno met young people with buckets.

Friends of the two who grew up together always pull up and tell their stories to young people to help them build their own pipelines.Some were willing to listen and immediately jumped at the opportunity to start a plumbing business.

But sadly, most of the bucket carriers impatiently reject the idea of ​​building a pipeline.Paolo and Bruno heard the same excuse countless times.

• "I do not have time."
• "My friend told me that a friend of a friend I knew tried to build the pipeline and failed..."
• "Only those who joined early, made money from the pipeline."
• "I've been carrying buckets my whole life and I just want to maintain the status quo."
• "I know I lost money in the plumbing scam, I don't."

Paolo and Bruno mourn the many lack of vision.

They admit that they live in a bucket-carrying world where only a small percentage of people dare to dream about pipes.

How to have passive income?

Here are some examples of creating passive income channels:

1. Make money through a business without having to be a direct owner or merchant;
2. real estate rent;
3. Receive royalties for publishing books, licensing fees for licensed patents or other intellectual property;
4. Earn advertising fees by posting online advertisements on the website;
5. Revenue from products or services frequently resold by salespeople that users must continue to purchase on a regular basis in order to continue using them.
6. Pension (pension).

Portfolio Income and Passive Income

Dividend and interest income from securities such as stocks and bonds, often referred to as "portfolio income,"

Often considered or not considered a passive income.

In the United States, portfolio income is considered a different form of income than passive income:

• The IRS has a specific definition of passive income that doesn't exactly match the ones listed above.
• Such as royalties, which are generally not considered passive in nature according to the Service Guide.
• In addition, interest, dividends, earnings from stocks and bonds, lottery winnings, wages, labor remuneration, commissions, retirement income, security deposits, etc., are all considered non-passive income.