5 KEY POINTS on Active vs Passive Income and how this affects YOU
People have been chasing the fad of Passive Income for a while now.
1. There are downsides
The concept of Passive income is that you can make money while doing nothing. You have something in place that is doing all the heavy lifting for you and you are just raking in the cash.
Though the idea is a pleasant one, there are some downsides that need to be looked at.
2. Lack of control
Control is one of the key downsides. When it comes to Passive Income you are not directly in control of the money coming in. This leaves you in the position of being the effect of something or someone else.
3. Working hard for no reward
As relates to Active Income, we hear the story of an overburdened worker behind his desk, working every day for someone else for the rest of his life.
He hopes to get a bonus or raise so he can pay back massive loans as he is simply not making enough to survive.
4. Being an Entrepreneur
Though this can be true, as an Entrepreneur, being Active is absolutely vital to the lifeblood of your business and wealth.
Going in with the idea that this is going to generate immediate passive income is not the way you start.
5. Reaching power in your business
Passive Income comes from working out ALL the kinks in your business and reaching a state of POWER.
At this stage your business is virtually running itself and in large enough volumes that you do not have to be as ‘Hands on’. You have good staff and all the mechanisms in place to ensure everything keeps ticking over. You just need to observe, monitor performance and step if there are any alarm bells ringing. This is no easy task to establish.
Our viewpoint
The viewpoint of Lighthouse Consultants on this?
Work your ass off now because it will pay off later.
Passive income is a reward from devoting hours of time to establishment.
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