When we talk about financial independence, we often emphasize how importantpassive income is.
Passive income makes money for you without effort.
However, it can actually beworthmore, dollar for dollar.
It costs your time and effort, sure.
But you also pay taxes on your active income.
Passive income doesnt have any of those problems:
Second, theres no associated costs with the passive income.
Third, financial independence grants you geographical independence as well.
Youre no longer tied to one particular spot.
How much would you pay your employer (or give up) to work from home?
To work from Spain?
To work from the mountains in the summer and the beaches in the winter?
To work from… anywhere?
Whats the value in that?
While some passive income still requires taxes, those costs can be less cumbersome than on an active salary.
Of course, passive income is harder to generate sometimes.
Investing, starting a side business, or owning rental property are hard to do.
Especially if you dont have much to start with.
However, theyre goals worth working towards.
Arguably, its more important than simply boosting your base salary.
Active Versus Passive: A Dollar Isnt A Dollar| Dividend Mantra viaRockstar Finance
Photo byChris Potter.
