After writing about building passive income since 2009, people still seem to be confused about the difference between active income and passive income!

Let me finally put this confusion to rest because I don’t want people to get tricked into thinking earning passive income is easy. It is not!

It took me from 1999 – 2012 to earn enough passive income to leave my investment banking job behind. Then it took another five years to earn enough passive income to support a family of up to four in expensive San Francisco.

Yet, despite earning enough passive income in 2017 to stay free, I’m still generating active income to generate more passive income.

Why? About 60% of the reason is due to keeping up with inflation. Housing, healthcare, and tuition costs are rising even faster than headline inflation. When you have children, these costs are the most impactful.

Keep reading this article on Financial Samurai.

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