Sunel's Blog | Debunking the passive income myth

Sunél Veldtman, | 11 November 2022

I find it strange that people who manage their investment properties define their management work as ‘passive’. The outcome even is called ‘passive income.’  Any investment or lifestyle asset requires attention, money, time, or energy. It means action which is the antithesis of passive.  

If we understand work to be someone employing energy, time, or money in return for income, be it primary or secondary, then there can be no wisdom in the phrase ‘passive income.’ Either you do the work yourself, or you pay someone to do the work. Both require expenditure of some form.  There is no scenario where the return comes with scant attention, time, or energy.

There are those for whom, after careful consideration, endeavours such as property investments make sense. However, you should consider the real cost of your investment including the cost to your work, family, exercise, fun, or rest.

And when you consider the cost of your time and energy, what then would you pay someone else to give you back that time and energy?

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Kind regards,