Relationship between expenses and passive income?

[Passiveearner]

You may be generating passive income through a business. However, it might be possible that you may incur various different kinds of expenses while running the business. Those expenses may be related to the business you are currently running in order to generate passive income. This is one of the most important things you may need to know. So, what are the best ways to deal with expenses in case if you are running a businesses that provides you with passive income?

 

[nomad]

Unless you have managed to build a business that runs on auto pilot of is entirely managed by your team, a business is not a passive income source, it is mainly active income source.

 

[Starmix]

There's no guaranteed business and even job so you cannot determine fully rust the profit of your business serves as your passive income. It's better this way invest part of your profit from your business you can surely hit an investment good to be your passive income like Stocks.

 

[Suba]

To be able to run a business you not only incur expenses but also costs. After all, running a business is not passive income unless you sell franchises. The most common example of passive income is investing in stocks, bonds, mutual funds, etc.

 

[bestwriter]

Passive income is where one sits back and enjoys the one time effort. The question of on going expense does not arise.

 

[Fidelia]

You would just have to explore ways to maintain the tools that generate the passive income without breaking the bank.

 

[Niyi Briggs]

Passive income sources would help you to be able to spend your active income freely while reserving passive income for investment.

 

[Shavkat]

In my opinion, we need to consider the fact that passive income should be higher in scale as compared to expenses.

 

[Rubz]

There is an important relationship between expenses and passive income. High expenses reduces passive income and increasing passive income can help to cover up expenses. Understanding one's passive income can help to guide one's expenses.

 

[Kera]

The expenses that you incur with passive income is just for maintenance and upgrade. That is not avoidable of you want your passive stream to keep paying you.

 

[Passiveearner]

Passive income should not only be higher, but it also needs to be managed well. Many people never actually consider this fact and they spend money excessively which has a bad effect on their financial conditions.

In my opinion, we need to consider the fact that passive income should be higher in scale as compared to expenses.