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Passive Income
The disadvantages of earning money passively
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[QUOTE="King bell, post: 271249, member: 75687"] 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. [/QUOTE]
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