When Passive Income Replace Active Income?

[moonchild]

Passive income can replace your active income if you can make the same amount of money from your passive streams, many people dream of quitting their jobs without having a solid plan on how to build their income, and they think passive income can be built overnight, the answer is totally opposite.

Before quitting your job or your active income stream make sure your passive income is at par, else you'll be taking out investment and end up at square one, building a passive income generally takes time and it's not a plug and play thing.

Give enough time for example 5 years to build a sustainable passive income that you can live on and can replace your active income, this can be possible with discipline and dedication, many people have done it, it can even be faster depending on the channel you're using to get their, online business seems faster than traditional means.

 

[Ganibade]

It's crucial to create a sound plan and allow it time to replace your active income with a sustainable passive stream. A strong passive income that can support your lifestyle usually takes five years to establish.
Earning passive income takes commitment and discipline; it's not a magic bullet.
Here are some important things to think about:
Patience and Consistency: Building passive income takes time and effort; it does not happen quickly.
Diversification: To reduce risk and increase profits, distribute your investments throughout a number of channels.
Investment and Time: In order to create passive income, both time and money investments are needed.
Channel Selection: Based on your abilities, passions, and financial objectives, select the best passive income streams.

 

[Leah Kelvin]

In order to gain further financial freedom, the aim of passive income is to change or support active income. The period taken for this change depends on factors such as current earnings, ambitions and speed of accumulation. Steps include assessing one’s financial situation, setting achievable goals, establishing an investment portfolio which spreads risk over different assets classes like shares, bonds property etc., monitoring how well they are progressing towards these targets and gradually increasing their share of total revenue generated from work done each year. However not all people will find it easy to completely replace their wage with a pension but having multiple sources can bring about greater financial stability. There are many ways by which you can generate some extra money without being actively involved in anything such as buying stocks; investing into real estate and peer-to-peer lending among others which may also offer more flexibility in terms working hours hence peace of mind