Why do we need active involvement in order to and passive income?

[Mastergp]

Active involvement is often necessary in order to generate passive income because it is often the case that an initial effort or investment of time and resources is required to set up a source of passive income. For example, starting a rental property business, creating and selling a digital product, or investing in dividend-paying stocks all require active involvement up front, but can generate passive income streams over time. Without the initial active involvement, the opportunity for passive income may not be created.

In addition to setting up a passive income stream, active involvement is also often required to maintain and grow it. For example, a rental property business may require active management to find and screen tenants, handle maintenance and repairs, and negotiate leases. An investment portfolio may need to be regularly monitored and re-balanced to ensure it aligns with one's financial goals.
Furthermore, passive income streams can sometimes face challenges and obstacles that require active involvement to overcome. For example, a drop in rental income due to a decrease in demand for rental properties may require the property owner to take active steps, such as reducing rent or offering incentives, to attract tenants and maintain their income stream.


In short, while passive income can provide financial freedom and stability, it often requires active involvement and effort in order to set up and maintain.

It's also important to note that passive income streams are not completely passive, as they still require ongoing attention and management. For example, even if you have a portfolio of dividend-paying stocks, you'll still need to monitor your investments to ensure they're performing well and align with your financial goals. Additionally, you may need to make adjustments to your portfolio over time to reflect changes in the market and your personal circumstances.
Another example is creating an online course or an e-book to sell. While the product is created once, you'll still need to actively promote it, engage with your audience, and address any questions or concerns they have in order to maximize your sales and income.
So, while passive income can provide a more hands-off approach to generating income compared to traditional jobs, it still requires a certain level of active involvement and management in order to be successful.

 

[Chibson]

Probably, some people think that making passive income totally means that you will not be actively involved which is probably a lie. If you want to build a sustainable passive income source you must dedicate some years of hard work and consistency for you to be very successful with it.

It actually takes some people more than 10 years for them to be able to build a sustainable passive income for themselves.

It is not something that comes easily but with a lot of consistency and hard work you can achieve it. You also need money sometimes especially when you are going into a real estate business.