Why it is Important to Build Make Passive Income

[Kane]

You can make money in two ways, one, you work and receive payment for your work. This is active income. Two, you make your money work (investment), or create product that sells to bring you money, of make money for something you have done in the pasty (earning royalty for instance). This is passive income. It is not enough to just work for active income. Try to set up passive income streams. Passive income means you earn money without actively working. Once you set it up, money will come rolling.

 

[Riberet19]

It's important to generate passive income if you're looking for financial independence or simply to improve your financial situation, but passive income, especially if you're a worker, builds up slowly, it's important to compound yourself as well when you're building your passive income.

 

[Kane]

There is a limit to ow much active income you can generate as you can only work for limited hours. However, if you have managed to build passive income source, there is no limit as you do not have to do any ongoing work.