Passive vs Active Income
- Thread starter funkie
- Start date
We must be able to distinguish between active income and passive income. Active income is obtained by working, such as income from faucet sites, ptc sites, getting paid from forum sites, trading, office work, lawyers, doctors etc. While passive income is obtained from capital or expertise, such as book authors who get royalties for every sale of their books. proceeds from house rent (rent income), dividends and capital gains, interest from bonds or deposits etc. So it is impossible for someone to prefer or only rely on passive income to fulfill their life needs because it requires large capital or expertise.
I agree that passive income is hard to earn. I have rental income from one of my properties. That is what I call a passive income. I don't rely on it as sometimes there is no tenant on this property, therefore one should not rely much on them. We should focus on our work.
Passive income is a source of income that require less input, but active income require a rigorous work to ma ok money.
I need both. My passive income is mainly the dividends I received from investment in stocks. They are not stable income and not enough for me to make a living. I rely most on the active income I get from doing translation work.
Both types of income have their advantages and disadvantages. Active income provides a stable and predictable source of income, but it requires a lot of time and effort. Passive income, on the other hand, can provide a passive stream of income, but it often requires a significant upfront investment and can be less predictable.
Who even told you that passive income generates low revenue. That's a wrong assertion. Real estate is a passive income stream. And it pays the people that are in it well. You actually need both active and passive income.
Personally in my opinion I don't see any reason why you should not make both passive and active income viable for you because having more than one means of income is always going to be better than having only one.
Who says passive income is comparatively lower? It depends on the scale you operate. A person that has five different estates won't tell you the pay is low.
Generating passive income is difficult, but generating active income is comparatively simple. However, if you want to build your wealth you need to generate passive income because you earn money without any ongoing work.
Almost everyone would prefer to make money passively. Before you make passive income you must work actively and build to get to that stage.
I so much believe in passive income because it is what wil guarantee financial freedom.
You need a passive income because it is a way to make money effortlessly.
