Would you rather work for your income or get paid while you sleep? Before you buy into passive income, be aware of what you are getting into and understand the trade-offs.
In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks about the pros and cons of passive income for potential clients in medicine. Oftentimes, it can cause more harm than good.
- What is passive income? How is it different from active income?
- Too Good To Be True: Why doesn’t everyone buy into passive income?
- Two Forms of Income: Earn income from labor/time or assets/investments
- Return on Investment (ROI): How you get income without earning it
- Stocks/Mutual Funds: Most common forms of investing to earn income passively
- Starting your own business involves higher return potential but greater risks
- #1 Issue: Decision to pursue passive income with sole reason is to make money
- Time Commitment: What do you want to do with your time? Live your ideal life