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JohnMark12
Posts: 4
Joined: 11/19/2020
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The Common Sense of Earning a Passive Income |
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Active income is an income we generate from our hard work. When we work for money, it is active income. But, when it is our own money that works for us, it is passive income. Airbnb passive income florida is an income we generate from our investment. How to generate passive income without active intervention is not a kind of magic that everyone could have.
How to generate passive income? Passive income is generated when our investment earns because of our timely decision. In this type of income, we are paid for the decision we make and for the risk we take. When we become afraid of investing, we tend not to make any decision. Consequently, nothing happens to our money. To generate passive income, we should make the right decision on what and when to invest and not decide about not investing. We must also calculate the risk - the higher the risk, the higher the return. The lower the risk means the longer it takes to get the potential return. It depends on who we are and what investment fits our personality. Proactive people are naturally career oriented so they can successfully generate active income. On the other hand, patient people are wise decision makers and risk takers. For these people, these large companies are their source of passive income. For small businessmen, they must exert all their effort for their business. They have trouble making their businesses grow because they also depend on the active income they generate from operating their businesses. Would this mean that in order to generate passive income, we should have had large capital to invest? Not necessarily! We can do so by investing in shares of stocks even in smaller amount of money. This is also true with mutual funds that pool individual investments in small amount to make it one big investment. This means that we generate passive income like airbnb arbitrage investor. |
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Thursday, November 19, 2020 at 1:24:06 PM |