Why To Build Passive Income Rather Than Working Hard for Active Income?

Why To Build Passive Income Rather Than Working Hard for Active Income?

Do You know that Rich & Middle Class both work hard. In fact, everybody in this world work hard. Even Warren Buffet the legendary Investor and World’s Third Richest person according to Forbes also works hard at his 80 years of age (As of 2010).

But there is a huge difference in working hard between rich and middle class. Basically Middle class work hard for the Hard Earned Income also known as Active Income while the Rich work hard for the Passive Income.

Understanding the basic difference between the Active and Passive income makes all the difference.

Active Income means income generated from your hard work. It is the income generated from trading your time in exchange of money such as a job income, second job, over time, part time…etc…

Passive Income means the income generated from your Assets such as the interest income, business income, dividends, royalties…etc..

The main problem with the active income is that you will have to work hard for your entire life to earn that income and the day you stop working behind your that income, you will suddenly loss that income stream.

While the main advantage of the passive income is that, you will have to work hard at once only to develop that income stream and once you do that hard work, your job is over. After that weather you work or not, the money will keep flowing into your bank accounts.

Rich and Middle class both work hard for money but the middle class work hard for the active income while the rich work hard for the passive income.

This is the basic difference between the rich and middle class hard work. This is one of the most important financial lesson that rich teach their kids but the poor and middle class don’t.

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I have given 6 lessons and 10 myths about money that rich teach their kids but the poor and middle class don’t and this is the reason why the kids who receive this financial education become rich ultimately. So download my eBook right now and financially educate yourself right now.