View Single Post
Old 07-27-2015, 01:19 PM  
aka123
Confirmed User
 
aka123's Avatar
 
Industry Role:
Join Date: Jul 2014
Location: 64 00 N, 26 00 E
Posts: 4,450
Well, there really isn't such thing as passive income. In 99,99 % of cases it is result from previous investment and thus subject to calculating discounted cash flow that shows the real value for that investment. AKA passive income is profit from some investment (often work) and to make things worse its value is strongly lessened by time as discounted cash flow shows.

Well, not that I wouldn't pursue for such income myself, but it really isn't just candy and candy when you understand it better.

In simple if someone didn't got it: you do the work now and get paid sometime in the more or less distant future, if you even get paid. That risk by not getting paid can be and usually should be included in the calculation. So, basically passive income can be compared to doing work for someone (now) and he says that he will pay you in the future; lets say bit by bit after 3 years and during 3 years. Does that sound like a good deal? How many of you guys would take such job? Well, business wise it is good deal if the money is enough good, but if you would get paid the normal amount, it isn't good deal.
__________________
aka123 is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote