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I think we are use passive income to mean different things. One of the meanings I tend to use it is capital preservation. I have worked and created savings for
by vaidhy 2y ago
I think we are use passive income to mean different things. One of the meanings I tend to use it is capital preservation. I have worked and created savings for $x. What can do so that I do not lose that money and make it work for me? Index funds, 4% withdrawal rate, becoming a landlord are all some kind of answer to that question.
Another meaning is something like "get rich quick" schemes. There is a overlap between the previous one and this, but here the focus is on outsized return and not preservation.
A third one that people tend to associate with the term is about going from almost nothing to a large something - either by "working" the system, people etc or through generous social net. The difference is your starting point between this and the previous one. The second kind of thing targets people with money while this targets a much younger crowd.
After reading through the article, it seems like the author mixes up 1 and 2..