The second lesson I learn about passive income is:
2. Passive income doesn’t mean it is permanent income
Stock market could tumble and companies cut their dividend. Suddenly, your dividend income is gone. On the other hand, the market could be extremely flat for a couple of months; you cannot write any option to generate the income.
Your rental income could be stopped for 2 weeks when your tenant moves out or even worse, your tenants trash your property and force you to conduct a lot of repair work and experience a long period of vacancy.
Your business passive income could be reduced dramatically due to new competitors or new technology changes the market and fee structure. You need constantly improve your business efficiency and understand the value your biz can add to customer.
2. Passive income doesn’t mean it is permanent income
Stock market could tumble and companies cut their dividend. Suddenly, your dividend income is gone. On the other hand, the market could be extremely flat for a couple of months; you cannot write any option to generate the income.
Your rental income could be stopped for 2 weeks when your tenant moves out or even worse, your tenants trash your property and force you to conduct a lot of repair work and experience a long period of vacancy.
Your business passive income could be reduced dramatically due to new competitors or new technology changes the market and fee structure. You need constantly improve your business efficiency and understand the value your biz can add to customer.
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