Saiwania wrote:Thermodolia wrote:Passive income is any income you get in which you don’t get a salary for. Rent and stocks are both passive income sources. Passive doesn’t mean not working it means not collecting a salary as since if everything works well you can sit back and passively earn money
The problem is that most income sources don't work out well automatically. It isn't like collecting dividends or bank interest on a large/massive balance.
Rent is not passive in that you have to manage the property and all the bullshit that comes along with owning it, like doing repairs/maintenance and to pay the taxes and mortgage on it (if applicable). Stocks aren't passive because you have to do the research on corporate balance sheets and look at if its trajectory is good or bad. If your company goes obsolete, you'll probably lose your money in it over the long term. Apple went up, but Circuit City or JC Penny went downward until those places were gone or nearly gone.
Income which is passive in the truest sense of the word, is the most advantageous economic position possible, which is why it simply doesn't ever happen in real life more often than not. It may for a short time, but something along the way disrupts that without any actions on your part.
Harry Potter was a cash cow in its heyday, but once it became old news, its income obviously went down to reflect its new status as no longer #1 in its genre.
Again you completely missed the part where I said that passive doesn’t mean not working it means that you aren’t actively collecting a salary irrespective of how much work you put into it.
Passive income is a legal definition and doesn’t have anything to do with work
Al Cap-owned. 
