Increasing Active or Passive Income

I was watching a YouTube Video, in that there was an argument by the finfluencers that at an early age of the career, the person should run after increasing their active income rather than running after passive income. This is because the passive income doesn't easily replaces one's active income. But if you have a good active income it is quite possible that you can generate the passive income.

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Now to be honest it is quite true. As an Individual if you know that you have that skills where you can get paid quite handsomely then you should run after the money and get as much active income as much you can. This is because the active income can help you to build that passive income by investing more and more. The only catch is that you should not increase your expenses. Now this way your active income can help you to build that passive income.

Now what happens if you run after the passive income. The problem is building the passive income without no money or less money is that you can never generate that wealth which you need to replace your active income with passive income. And this is quite true. If we take a stock which gives the dividend. We know that we have to get a lot of that stocks to actually get the good dividend and consider it as passive income rather than just getting the peanuts.

People with the skills which cannot pay them the active income can actually look at the direction of generating the passive income from starting because it that way they can have both the strean open to do both the tasks simultaneously like the active income as well as having the passive income which can supplement your active income. In this way you are not only helping yourself in getting that desired income in the future but also can easily replace your active income from the passive income.

This strategy might work when you have good active income too, but when you can generate quite a good active income in your life and if thar can solve the initial capital problem then you do not have to worry at all.