Someday I will rely on passive income and not on my job. Gotta escape the rat race 😁

I tried the passive income route. I found you still have to work for it. It’s not free money and requires sometimes more effort than a 9-5 job. But it feels great when you control that extra effort vs. someone else always breathing down your neck.

@stackodev how is it passive then?

@iiii depends on what you define as passive. investing in stocks and pulling down capital gains is more passive than, say, writing a WordPress plugin and doing the work required to bug fix and upgrade its features. Or dropshipping a wholesaler’s products.

But all still require some amount of work. Day trading is effort-intensive with high risk trades made regularly thru each day. Slower long term investing still requires research to time markets. Drop shipping means you have to do marketing, advertising, web design, etc.

The only true passive income is drawing on your retirement funds.

I still maintain there's no such thing as "passive income", there's just upfront effort for later payment that eventually dwindles to zero.

@AlmondSauce $1.000.000 in a decent set of index funds will give you ~$50k / year avg, if you can survive on $30k/ year thats good enough (then your wealth still grows over time and its pretty darn passive)

@iiii there is no such thing as passive income you can either work hard as hell or work as little as possible and still earn a lot of money ("passive" method)

@ItsNotMyFault Sure, if you've got a million or so you can stick away in index funds I guess - but I'm certainly not that rich 😅

Step 1: be rich
Step 2: see step 1

@stackodev there is a minimal effort passive income when you have finished it and that is dividends. When you have a very large capital then there is minimal to zero effort. That is what I'm achieving for.

What's the 2nd best kind of passive income aside from collecting high dividends income monthly?

Real estate or being a youtuber?

@stackodev what kind of passive income did you try?

@Devnergy being a youtuber is not passive at all. you need to produce in regular intervals

@coffeeholic so truly dividends is the only passive income that does not rely any other initial effort (investment money effort)?

I'm thinking of royalties. Some initial work then will make monthly too just like dividends

@JustThat being a politician. Somehow they are all rich

@Devnergy Tried real estate and currently have a side hustle of monthly revenue for low-effort automated website maintenance. But it is all still work. Nothing comes for free.

I don't think Kevin Leary is talking about not working though. He just wants to have a higher potential return where you could earn big money if you succeed big time. As opposed to just a fixed salary.

@Devnergy I don't quite get why so many people are interested in passive income and dividend-stock as opposed to non-dividend stock.

Unless one is strapped for cash, I don't see the major point in investing large sums in a dividend stock to gain a regular dividend, compared to a regular stock that you sell in a few years.

dividend stock often under perform in total compared to most non-dividend stock (Higher potential growth since they can reinvest rather than pay shareholders) I prefer regular stocks and the Warren Buffet advice of "set it and forget it": pick good stocks and wait a decade.

Dividend stocks still require a large capital tie up to make significant money and it's still a risk of losing money when the stock goes down.

@jiraTicket Set it and forget it > day trading for sure. We have done this and have done well by it. Some of our stocks include dividends but not all. This may be unpopular among DIY traders but we “outsourced” all our investment management through Ameritrade and Edward Jones. No complaints as they have consistently delivered consistent gains between 10-18% or more. They’re not concerned with market timing or gaming risky stocks. They pick consistent performers that regularly trend up and to the right. Assuming markets don’t completely depress for the long term and inflation doesn’t go completely nuts, we could have a very comfortable early retirement in 10 years.

@jiraTicket when the dividend stock goes down, your dividend will go up. That's what I like about dividend stocks.

@JustThat investments, work, inheritance, bank robbery, pick one that suits you.

I wish.

@Devnergy Never buy divident stocks you're literally wasting money. When dividends are payed out you know what happens? The stock drops by the exact amount of the divident. You're not making money you're essentially just being forced convert some of your invested capital to money which then gets taxed immediately. And depending where you live that tax rate may be much higher than for long term investments

@Devnergy Also in general: You really can't get rich with a side hustle. To whom has everything more will be given aka. passive income only works when you're already well off

The best thing is probably also the "boring" one which is to keep working a normal job and putting your energy into getting a better job, saving money and then investing diversely for a 10% anual return (At a million that's still a cool 100 grand yearly salary)

@12bitfloat so you mean I should just focus on growth stocks with no dividends? Example Tesla?

When you invest in dividend stocks, you should have no plans of selling because you'll keep on getting dividends.

@Devnergy I think he means you should focus on your business to generate enough income to invest in "passive stuff"

R A T R A C E

P A S S I V E I N C O M E

did you got high on self help books last night?

@DEVil666 you want to become a slave forever? No not last night but years ago