Posted on March 30, 2010 - by PanzerGrenadier

Passive vs Active Income: Continuum vs Dichotomy

Photo by filtran

It’s coming to the close of the first quarter of the calendar year (or last quarter of the financial year for organisations with their financial year ending on 31 March 2010) and bonus time.

I was fortunate that my efforts in the last 12 months from January to December 2009 were recognised and received a decent bonus from my employer.

Comparing my passive (and semi-active income from capital gains and blogging) against my bonus, I realised that my bonus was still higher.

What are the implications for me in terms of my journey towards financial freedom?

Salaryman/woman Don’t Quit Your Day Job Yet

For many of us who are salaryman (and women) who earn most of our income from employment, it is a sobering reminder that active income will still constitute our primary source of savings and investible capital. Singapore is a place where you can get a job if you are still relatively young, have the relevant paper qualifications and experience for the jobs available in the industry.

Of course, there is global competition in the labour market given the lax immigration policies of the Government for the last decade or so which has made life quite challenging for the less educated and skilled.

Even though I have a decent job now that pays me a fair income to sustain myself and my family. I am driven by the constant worry about financial independence and freedom. Thus, even as my active income from employment is the main driver of savings. I continually push myself to look out for passive income opportunities. Read more…

Related posts:

1. Seven steps to creating passive income from the stock market.
2. A minimum of $50k in annual passive income.
3. Create more passive income with limited capital