Nothing comes from anything
Passive income is the income for which you no longer have to actively work. As a rule, you have created the basis for this through your previous work and will then receive the earnings for it. However, this type of income not only has advantages, but also the disadvantages.
Benefits of passive income
Whenever you receive money without actively investing a lot of time and work, you can speak of passive income. This is the case, for example, when you have published a book and then paid for it through the sale received or if you interest charges and receive dividends on your invested capital.
The decisive advantage of passive income is of course that you receive money without having to invest a lot of time and work.
Thus, you receive the income completely independently of your other employment, so that you can rely on can look forward to an additional source of income and still pursue your regular employment can.
Some of the disadvantages at a glance
One of the disadvantages of passive income is that you usually have to invest a lot of time and work first. During this time you will usually not receive any remuneration for your work and at the same time it is not yet clear whether the effort will really be worth it. Because despite a lot of work and a lot of time invested, you get no guarantee that it will really be worth it afterwards and that you will be rewarded with additional income.
Most of the time, it is a long way from having no income to getting your first cash flows. So you have to be able to survive this dry spell first. It's not just about your personal stamina. If you have invested a lot of time and effort in the respective project, then you must be able to bridge this time financially.
In order to bridge the gap, you usually have to carry out this activity alongside your regular main occupation. The additional workload should not be underestimated.
Who does not dream of it: Hardly changing your life, and still the money flows. That …
The amount of passive income is usually not a fixed value, so you cannot factor this earnings into account.
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