Is passive income neccessary?

[King bell]

In today's world, it's more important than ever to have a stream of passive income. With the cost of living on the rise and the uncertainty of the job market, having a passive income can help you reach your financial goals and provide financial security.

There are a number of ways to generate passive income, and the best way to do it depends on your individual circumstances. If you have the time and opportunity to invest in real estate, you can create a steady stream of income through rental properties. If you have a knack for investing, you can generate passive income through dividend-paying stocks or other investments. And if you have the discipline to save money and invest it wisely, you can build a nest egg that will provide passive income for years to come.

Passive income is a great way to reach your financial goals, but it's not the only way. You can also generate active income through your job, businesses, or other ventures. The important thing is to find the right mix of passive and active income that works for you. With a little planning and effort, you can create a financial plan that will help you reach your goals and provide financial security for years to come.

 

[Suba]

Currently we can't rely on living expenses only from fixed income, either monthly salary from other business activities, so we need additional income that is not much activity, which we often refer to as passive income. The importance of passive income is not only increasing your bank account balance, but passive income can also reduce anxiety about future financial conditions so that peace will be created and even achieve financial freedom, allowing us to achieve financial goals faster. If passive income is sufficient then you can determine early retirement.

 

[anil02]

When we are young we are more energic and with our regular work we can do some other work to earn some extra earning. For salaried person they can start some extra earning with investment is stock market and mutual funds is also one of the best one option. When they deposit some money with this work they can invest it real state for long time. Earning with this investment will help them in meeting big expenses in old age.

 

[Jasmine]

Passive income is necessary for two reasons: One, to build your net worth, and two, to save money on taxes. Unless, you are earning hundreds of thousands dollars as a salary, it is difficult to rely on your active income. Unless you are a CEO or manager, your monthly income will be hardly enough for you to build your saving. Having passive income means you have additional income source. If you have passive income sources, you can use that income to buy assets, and build your net worth.

Between 2014 and 2018 Elon Musk is reported to have paid 3.27 percent of his income as tax, however, between the same period, the average worker is said to have paid about 20 percent tax. Do you know why a billionaire pays lower taxes competed to his net worth? That because most of their money comes from passive sources and passive income has lower tax.