there are only 3 types of income

1 earned income

trade your time & labour for money (fixed)

dont work? no money

not passive income, but have no shame

it aint much, but its honest work

2 entreprenial income

trade your time & labour for money (variable)

dont work? if you built a good business, could be possible to eventually be passive

people think that this sort of income is passive, but i think you actually work more hours

the main trade off vs employee mode is trading away fixed office hours, capped upside and no immediate downside for 24/7 working hours, uncapped upside, but also very real risks of capital losses

influencers and content creators are in this category

 

3 investment income

risk your capital for more money (there are fixed and variable returns)  

truly passive to a large extent

requires small amount of thinking energy to manage investments

unfortunately, requires capital

as they say, no money no honey

i recently spoke to someone about making money

i think this persons impression of wealth generation is actually quite common for most poor people

 

person gave me advice to go buy businesses and operate them

"that is how all the rich people do it, they own businesses" 

i dont think this person understand that most businesses are shitty businesses and anyone that wants to sell their business, is probably operating a shitty business

rare situations of force majeure may present good buying opportunity, but that is luck, not skill

i say that i already own businesses, through stocks

the person said that's not the same. no storefront to visit, no employees to boss around.

i say, isnt it good to not to have employees?

isnt it good that i dont need to worry about the daily operations of the businesses at each location?

the person said if i owned the businesses, i can hire compentent management and not do anything and earn all the profit

i say, i already do nothing and earn a lot of profit :)

if it is so easy to make money like that, why don't everybody do that?

i think most people dont realize how hard it is to run a profitable business.

open business very easy. go register company on ACRA can already

open business that makes money? if so easy, everyone would be running their own business

open business that makes money and no need any effort? if so easy, everyone would be rich and FIRE already

if you know so much about businesses and making money, you must be very rich right?