Are there any risks associated with passive income?

[Nite]

Passive income can indeed come with its fair share of risks, particularly when it involves investments. Stocks, real estate, and cryptocurrency markets are known for their volatility, which means that the value of your investments can fluctuate greatly over time. It's important to be prepared for potential losses and understand that market risks are inherent in these types of investments.

 

[kirubel]

True, passive income could have some risks when it is related with investing money on a business to get passive income, anything that is related to money investing it needs to be conducted very wisely.

 

[You]

Yes, some risks associated with earning a passive income include large front loaded cash outflow in case of failed ventures, variable monthly cash flow that leaves people exposed, reduced value of product offerings if not continually improved, greater competition that eats into the market, and compliance challenges that add to costs.