@Just1dood
What is Financial Freedom? Episode 1: Passive Income (with end credit easter egg)
**31 August 2021, Somewhere in the Metaverse - UplandDood (@Just1Dood)** *Written on 2 August 2021* This series of 3 episodes have been sitting in my Article Bank for a while. As you can see, this one was written almost a month ago. It's just that I haven't found the appropriate time to post them. And also I have other articles written later that were more timely for publication. https://read.cash/@Just1dood/bank-of-articles-why-i-use-it-you-should-too-5c3a9e54 Since I'd posted The Incomplete Idiot's Guide to "This is Not Financial Advice" yesterday, I thought today may be as good a day as any to post this series. https://read.cash/@Just1dood/the-incomplete-idiots-guide-to-this-is-not-financial-advice-fb05c77b However, there will be a gap tomorrow as I've planned to post my very first monthly report tomorrow. Last month I tried to get my feet wet by posting Where is my July BCH report card? Good question! https://read.cash/@Just1dood/where-is-my-july-bch-report-card-good-question-1b399eef Anyway, if you like the First Episode of this series, then do check back two days from now for the continuation. Disclaimer **Since the word "Financial" and "Freedom" is displayed clearly and glaringly in the title, I feel the need to start this article with a disclaimer**. "*No financial planners were harmed in the making of this article. I couldn't afford to find any to harm. With the limited budget, we got stand-ins. To be safe,* ***do not take what they say as Financial Advice****.*" In case the above wasn't clear enough, let me repeat the "**Wet Paint**" warning again. "**Do Not Touch**" and... "***Not Financial Advice. Do your own research.*** *All thoughts are my own. Did not run through any checkers. Definitions are respectively owned by the definers and attributed as such.*" I think we can proceed now. Aren't you glad I didn't put the disclaimers above in fine prints? This editor wouldn't let me. No such option. Count yourself lucky. Passive Income The definition given by Investopedia for Passive Income is as follows: *Passive income is earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved.* It's really simple and the term is self-explanatory. It is just that - **An income that is derived passively**. Though the definition is simple, pinpointing exactly what it is is not. In my opinion, **there is no such thing as getting an income without any prior input.** That input can be in the form of finances or time invested. It's always a **trade between time for money or money for time.**
Let's ask ourselves a question in order to get a better grasp of this. Do you think that Blogging will help you generate a passive income? My answer is - Yes and No. Each sponsorship above is a form of passive income. But it'll stop sooner or later if I stop writing. **If you need to keep on working and writing, then no. It's not a passive income.** You are still working for your income. As mentioned in the above paragraph, it will stop, if I stop writing. However, if the article that you have written is monetized and is an evergreen article, meaning it's timeless and has information that readers are looking for, then, the answer is yes. All you have to do is write it once, and it will generate an income for you without further effort. In another word, passively generating an income. If we look at the Investopedia definition again, you will notice that it doesn't say no work or effort is required. Take for example rental a property. Does the property fall out of the sky onto your lap, so to speak, and all of a sudden you can start receiving an income? Think of the effort and time and sweat and risk put into acquiring that property. Even after you owned that property and assuming it's been fully paid off, if you are unable to rent it out, you are still not enjoying a passive income. Passive income is like that elusive pot of gold at the end of the rainbow. But the good news is that unlike that pot of gold, passive income is achievable. But not without proper planning and much hard work. The same train of thought applies to the business alluded to in the same definition above. Time and effort are invested in the business in order that it grows to a point where no more personal time and effort is required for it to generate a sustainable income. I put "sustainable" because even though no time span is mentioned in the term Passive Income, I'd assume that all would like it to be somewhat "permanent" in nature and not for just one month or one year. I mean, if it's not sustainable, then what's the point of a Passive Income, right? In short, my understanding of **a Passive Income is that it is an income that is generated with minimal or without further input by the recipient and that this income is recursive in nature**. For many, **traditionally the easiest way to generate a Passive Income is to put your money in a time deposit or fixed deposit.** Depending on the amount of money committed, then the interest generated from that may provide you with a truly passive income. To be continued... This is a big topic and has to be broken down into multiple parts. I'm not sure how many parts yet as the remaining have not been written. One thing is sure, it'll be at least two. Duh. Yeah, cause this one isn't finished so there will be at least the next one. [Update: as of 31 August 2021, the publication date, there are 3 episodes]. Please, please understand that this is not a research paper nor is it a thesis. It is written purely based on my opinion and what I think should be common sense, which isn't common, and hence presented me with the opportunity to write this. Thank you for reading. Stay safe and see you in **Episode 2** the day after tomorrow (barring any unforeseen circumstances). [***This is not financial advice. It is the writer's personal viewpoint. Please do your own research.***] If you like, you're welcome to read the end credits.
**Article Credits:** Executive Producer: UpandDood Director: UplandDood Actor: Non (couldn't afford any) Key Grip: UplandDood Catering: UplandDood Housekeeping: UplandDood Chauffeur: UplandDood Sitting Duck: UplandDood Header: Unsplash.com - **Zlaťáky.cz** https://unsplash.com/@zlataky Image 1: Unsplash.com - **Morgan Housel** https://unsplash.com/@morganhousel Thank you for staying till the end of the credits. What? You're expecting an end credit reward? Oh wait, there is only one (The rest will get an error page)... Click here to claim. (please leave a comment below if you got it & share how much. Cause I'd forgotten what I'd allocated there. LOL.). https://branch.wallet.bitcoin.com/Mo19XLW9nib
Thank you again for dropping by. Have **fun with English**. Remember to share your experience in the comment section. Do drop by to say hi at my following addresses. I promise I'll be at home :) NoiseCash: **UplandDood** https://noise.cash/u/UplandDood Twitter: **UplandDood** https://twitter.com/uplanddood Publish0x: **UplandDood** (link takes you to site. You'll have to search for **UplandDood** to find me) https://www.publish0x.com/?a=zPdyP4BwbQ
36 comments
If I would buy a bus that could be use as a public transportation, does that count as a passive income?
That depends. Are you the driver? Are you the conductor collecting the payments? Do you still run around arranging the routes, the bus maintenance, etc? If you do, then it's not 100% passive since you still need to put in the time and effort to get that income.
I see. I'm the owner
If you're the owner and do not need to do anything except just receive the profits, then yes. It is passive income. Congrats! But do remember, it may not be sustainable in the long run as buses break down and have a lifespan. Unless of course. if your profits are enough to replace the car in the future and you still have plenty to use. Not financial advice Just saying. :)
oh well sorry dood, but I got it hahahaa. $.50? minus the 10% hahaha thank you! I thought it was a joke. i don't have passive income and yeah writing here isn't counted as one. I ought to be active...
Congratulations! You're getting another $0.10 tip from me for finishing to the end! Well done!
oh wow I'm proud of myself for finishing. So this is a trick to see who's reading it until the end? Very well, then. Thank you @just1dood!
Didn't design it as a trick. But I thought that it would be fun to put something as a reward at the end of the article. Also, it does tell me who is the first person to read to the end and gets it. Besides, I'd put a hint in the title. 😉
Then I happen to be lucky today uhuh. That's a cute gesture of you❤
You deserve it. :)
waiting for the second part lol but the link is empty already LOL
Coming out the day after tomorrow.
hmmm looks like something is lined up for tomorrow
Certainly is. My report card! LOL.
ahahahaa I lost tract already maybe I'll start tracking again this Sept
So much Information phew... took me god 20 mins to read it coz I had to read it slowly as I do not understand financial concepts easily...so i have to monkey explain myself each line 😅😅🤣🤣🤣
This is not my normal fare of articles. LOL. Normally I write really goofy stuff but once in a while, I do write something that needs a bit of chewing before swallowing. 😅😅😅
Never mind, I enjoyed it :)) and cant wait to read more from you :)
And I look forward to reading yours. I'll find time to do that once I clear some of my backlogged articles.
No problem at all, and once you get the interest of reading paranormal posts, remember me 😅😅🤣🤣🤣Tht is my niche, most of my posts are horror related
Oh no. I stay away from paranormal or horror-related movies. I have a weak heart. Do you put a rating at the top of your article? i.e. Horror/Non-Horror/Non-Paranormal? LOL.
Doooooooddddd 😅😅🤣🤣🤣😅😅🤣🤣🤣😅😅🤣🤣🤣 don't worry, my posts are not that creepy.
LOL. Okay. Will see. hahaha...(nervous laugh)
This is going to be fun 😅😅🤣🤣🤣 here's an idea, write reaction posts to my articles hahaha
As early as I can, I try to find numerous sources of passive income I could possibly get, to the point that it is self-sustaining. I just feel bad to some people who have no idea about this yet that they work actively but failing to make ends meet. Hopefully crypto will be able to help more people with that.
Kudos! You're starting on this wonderful journey early in life. I'm happy for you. I do wish you the best and that you can find full sustainability from your passive incomes early in life too!
I will use the free time I have to explore a lot. Thanks a lot! (Btw my phone glitched, I sent a lot to you. Can I have it back? Whoops!) 😅
Nope! Just kidding. Sure. I'll send them back. Btw, you got to be careful in sending and me sending back. Cause this can be misused. Do you understand what I mean?
Yes, I know what it means. This is the first time that it happened to me. I was clicking on "Reply" but the amount was clicked instead.
ok. No worries. If we get into trouble with the platform, at least we have this conversation as proof.
Nowadays, we read and listen to plenty of references to passive income. But few people understand what it really means. I like your comparison of passive income as the pot of gold at the end of the rainbow. Waiting for the second part.
I've been trying my best to find that Leprechaun but finally decided to stop wasting time and work for that pot of gold! Hahaha...
Smart decision !! LOL
In all my years investing, I have never really liked the words "passive income" much either. For the very reasons you stated here. ANY income, I don't care what it is, has to come from SOMETHING, and that something is almost always something ACTIVE. Even when I think of the dividends I earn each and every quarter from stocks I own, while I don't have to do much but hold the stocks to keep on getting the income, if I don't do SOMETHING to pay attention to what the companies are doing I may miss something, and lose my underlying investment—or even the dividend if it gets suspended. And they sometimes do. So even there I have to be somewhat active in my maintenance of that income. And you mentioned real estate as well. Passive? Not hardly. Those houses and other properties don't fix themselves, and sometimes you have to deal with tenant issues. Even if you have a management company handing much of the minutia, you still have to be in concert actively with the management company. Let's just all agree that anything defined as "passive income" is not necessarily passive, but just requires LESS work than other types of income.
Yes. The keyword here is LESS work than other types of income. Also, most of the time, it puts you in the driver's seat, and at a certain point in time, you get to decide how much time you want to spend in it because the war chest is large enough to weather through anything thrown your way. Not everyone can reach this stage. Nonetheless, it is still a goal worth pursuing rather than working whole life long and get screwed in the end. I've heard many such stories and have even witnessed this happened in front of my eyes...being thrown under the bus, so to speak. As usual, love reading your insights! They stimulate me to think deeper.
That was kind of the gist of my "Don't Just Work for a Paycheck" post. People spend a lot of time going after the al'mighty dollar, but fail to realize that a lot of the time the money we already made can make money too. And the more money that your money makes, the less your ass has to put in the work to make more. :)