There are also risks associated with passive income just like active income and the level of risks in passive income depends on the type of investment or job that will generate passive income
Are there any risks associated with passive income?
- Thread starter rubesh
- Start date
The level of risk in every passive income sources are minimal.
Yes risks in passive income sources can be minimal but it is good to do your research very well in order to understand these risks and Know how to go about it when there is any issue.
I still do not believe that there is no enterprise with no level of risk.
The passive income source would take your time at the beginning but you will tend to enjoy it in the end.
When it comes to passive income I will say to you that there are a lot of risks attached to it too especially if it has to do with investment but it is something that you can manage which is, you will get to invest only what you can afford to lose anytime there is a thing called crashing of site at the place where by you made such investment to earn passively.
I agree with you, there will be a risk of default so that the borrower cannot pay the debt, also if you have deposited money into p2p lending it cannot be withdrawn flexibly, so you need to pay attention to whether the p2p lending platform has protection for loans.
The borrower cannot pay full amount of the debt but could pay dividends like allow more time or more dividents so by this way you may avoid some problems like pay 33 % of amount of dividend due to hard money situation.
As the saying goes that There is no good thing that has no bad on it, the passive income means also incur some losses with them. For instance the crypto currency investment can be very risky though a great means for passive income.
Without a doubt, passive income comes with a risk. If you are into stock investments, it can be affected by fluctuations in the market. Also, inflation can impact your passive income.
When it comes to earning money through business or investing, there is always some amount of risk involved in it. In some cases what gives you passive income might no longer become a needed commodity, hence it would no longer generate that passive income for you.
Identity theft is a major problem for citizens with passive income in some countries. Today I again noticed that some powerful officials and leaders are involved in identity theft, falsely claiming that some married woman owns my savings.