The disadvantages of earning money passively

[King bell]

Ever since I found out about passive income, I have been intrigued by the idea of earning money without really having to do anything.

Many people tout the benefits of passive income sources such as dividends, royalties and rent. While there are many advantages to these types of income streams, they also carry plenty of risk that may not be immediately apparent.

One of the disadvantages of making money passively is that the investor becomes stagnant. He does not strive to improve his skills or market himself. He has become content with the income he is receiving and no longer has the drive to make more money.

How often do you read about celebrities who had it all and then squandered it away? When they first achieved success, they were driven and motivated, but soon they became complacent after they had made all that money passively.

A second disadvantage is that passive income can be very inconsistent. It may fluctuate depending on the amount earned from investments, royalties or dividends.

 

[Augusta]

Definitely every good thing comes with his bad sides, the good thing about passive income is that the good side outweighs the bad side

But this doesn't mean that it doesn't have the bad side. I totally agree with you one on the disadvantages or back sides of the passive income is that of laziness I have seen children were parents left for them fortunes in property and because they have this property that they can make money from passively they became very lazy. All what they wanted it's just to get rent from the property and that is it they can't even use the money to renovate the properties.

so the issue of stagnation with passive income is true because it will not allow one to be creative or innovative to start something working for money it will make one to overtly depend on it to their detriment daily.

 

[Ithedicious]

Well, being stagnant here to me is not a disadvantage because you have learnt a skill and you are using the skill you have learnt in the past to be making money , so as long as you're still earning with the skill you have learnt from then there's nothing wrong with that. It is left for you to decide if you are interested to improve your skill by investing more money and time on research and some other thing or you are comfortable with the once you have already acquired..

In terms of online skill being inconsistent yes I could understand because some passive way of making money from the internet may not be reliable all that and because of this it is always better for people to have more than one way of generating passive income and also fluctuation of passive income earning depends on the type of passive income business you're doing

 

[Rubz]

One of the major disadvantages of passive income to me is that the income might not always come when you need it since you are not working. Most passive income are fixed for a particular time. For example,in my location, rent is usually received annually and imagine if one doesn't have a side hustle, one might end up being stranded. Another disadvantage of passive income is that one won't be able to keep track of customers loyalty. For example, i have heard cases of tenants packing out without the knowledge of their landlords, just because they don't want to pay the rent they owe.

 

[AaronTahan]

Ever since I found out about passive income, I have been intrigued by the idea of earning money without really having to do anything.

Many people tout the benefits of passive income sources such as dividends, royalties and rent. While there are many advantages to these types of income streams, they also carry plenty of risk that may not be immediately apparent.

One of the disadvantages of making money passively is that the investor becomes stagnant. He does not strive to improve his skills or market himself. He has become content with the income he is receiving and no longer has the drive to make more money.

How often do you read about celebrities who had it all and then squandered it away? When they first achieved success, they were driven and motivated, but soon they became complacent after they had made all that money passively.

A second disadvantage is that passive income can be very inconsistent. It may fluctuate depending on the amount earned from investments, royalties or dividends.

For me, the disadvantage is that receiving passive income is necessarily associated with large financial investments in activities. There are very few options for passive income without initial investment.