The Importance of Balancing Active Income and Passive Income

nomad · Jan 1, 2024

Having passive income is crucial because it provides a continuous income stream even when active sources are lost. Likewise, you also need to have high paying active income source because without active income, it might not be able to create passive income. That’s because you can build passive income through investing, and your active income source will help you in investing.

When you are old, it is not possible to create active income source, therefore, in your young age, you need to work on your active income and also in the mean time start building passive income.

Mr Vector · Jan 5, 2024

That is why I do say to people that they should never save there money for retirement instead they should save and start an investment before they retired as it will help them to continue earning as they are unable to continue working.

eldavis · Jan 5, 2024

A lot of people do not know much or should I say they do not put much focus on passive income, they only focus on active income. Having a balance on both streams of income is extremely important.

SHAHID987 · Jan 6, 2024

In my view it's reality as we need to develop balance between active and passive income. And we remain active to earn money through active income as by doing jobs and some other means and then purchase apartment or house and give it for rent which will remain generating income for us passively.

Stardom22 · Jan 6, 2024

l think there is a very great importance to make a balance for both of the passive and active income that you are undertaking in your normal day to day activities.

nomad · Jan 7, 2024

eldavis said:
A lot of people do not know much or should I say they do not put much focus on passive income, they only focus on active income. Having a balance on both streams of income is extremely important.

That's because a lot of people do not know how to build passive income. You get a job and immediately start making active income, however, generating passive income I not as simple as that.

eldavis · Jan 7, 2024

nomad said:
That's because a lot of people do not know how to build passive income. You get a job and immediately start making active income, however, generating passive income I not as simple as that.

That's true though, active income is the easiest to get, but when it comes to passive income, it requires more planning, more strategy, more thinking and so on. Lots of follow-up on your part is also required as well.

nomad · Jan 7, 2024

If you have money, you can invest and start generating passive income, if you have skills to create a product, you can sell your product and start making passive income. It takes time though.

Rubz · Jan 26, 2024

It is very important to balance active and passive income because they would help one to be financially stable and also help one build a long term wealth. They also help one to reduce dependence on one particular source of income.

bestwriter · May 7, 2024

I am at a stage in my life where active income is no longer possible. I have enough capital that generates passive income for me.

nomad · May 7, 2024

bestwriter said:
I am at a stage in my life where active income is no longer possible. I have enough capital that generates passive income for me.

That's very good for you. While reaching certain age will stop your active income, you can start building passive income even when you are in your teens

cherry123 · May 27, 2024

This is the way to go. You are allowing money with for you while you are also actively working for your money

Fidelia · Jul 13, 2024

There must be a proper balance between active and passive income for anyone to have a good financial present and future.

Sanjeev · Jul 13, 2024

That's true we should start investing our money or work to earn passive income so that once we don't have our active earning we may be able to live without passive earnings.

The Importance of Balancing Active Income and Passive Income

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Mr Vector

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nomad

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