The Importance of Balancing Active Income and Passive Income

[nomad]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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