Is Earning Passive Income Ethical?Is Earning Passive Income Ethical? by Dave Tomlinson Income can be broadly divided into two categories - active and passive. Active income is a simple trade - time for money. You give your time to an employer and he gives you his money in return. It's the way the majority of people in the world earn their living. It is relatively stable and secure but is limited by the number of working hours in the week. Passive income is also known as residual income and is quite different. It is described as "an income received on a regular basis, with little effort required to maintain it". You could think of it as the return on an investment. Common examples are selling franchises or ownership of a rental property. With the latter, you do the work to find a suitable house, complete the purchase and do any required repairs or renovations. After that, your passive income is received from the tenant who lives there. An income source is known as a stream and a key to genuine wealth is developing several of these streams. Often people begin with a stream of passive income which is additional to their primary active income. The ultimate goal of course, is for the passive stream to become sufficient to eliminate the need for an active income. But for some, the pursuit of this goal raises the question of whether it is ethical. It's something that can be debated and ultimately everyone will have their own opinion on. The first and most important thing to remember is that earning income passively is legal. It is not, and never will be, against the law. The basic view of most people would probably be that if you are clever enough to enjoy such a position, then you probably deserve it. It essentially comes down to each individual and what they are comfortable with. Personally, I am perfectly comfortable earning a passive income and looking forward to when it will remove the need for an active one. I'm not afraid of hard work and I've done a lot over the years. The difference is that now I am discovering there is a better way. Life is short and if I can earn money in my sleep it enables me to pursue things that interest me during the day. That's the lifestyle people dream of and one that I'm beginning to make it a reality. A concern people express about passive income is that, unless you win the lottery, it's morally wrong to receive money for nothing. If it was stolen, laundered or counterfeit then of course this would be true but let's think about this for a moment. Passive income is NOT money for nothing. It is money that has been legitimately earned. The difference is that payments for that work will be ongoing so it essentially means that the hourly rate for what you originally did increases over time. Another concern people express about passive income is about tax. Somehow passive income and taxable income are confused as two separate entities. The simple truth is they are one and the same. Whether you earn money actively or passively, legally it must be declared and the appropriate tax paid on it. With that being done, you should have absolutely no legal, moral or ethical unease about earning passive income. With that question answered we can look at ways of earning a passive income. Apart from the real estate and franchise examples, we could also think of an author as earning income passively. The work in writing the book is rewarded over time with income from its sales. Salespeople often receive a commission payment when a subscription payment is renewed and once again, this can be viewed as passive income. I could go on quoting various examples and each of them has the potential to offer an attractive, ongoing income. However, most of them require a significant capital investment, time to establish, special skills, experience or all of the above. The best option to create passive income at virtually no cost and without the inherent risk is network marketing and the internet has now put the dream within reach of anyone. It still takes time and some work but the rewards are there for those who dedicate themselves. Be wary of programs that offer quick riches. It's a cliche, but if something looks too good to be true then it probably is. There are countless online marketing programs so seek one that is well established with a good reputation. Remain objective and network with others to get a range of opinions. Use that information as the foundation for your decision. There are many unethical ways in the world to make money. Earning passive income isn't one of them. If you enjoy such a position then you deserve it. You deserve it for not only the work that you put in but also for accepting the challenge in the beginning. That's where it all begins and remains a vital key to creating wealth online. Making that positive choice to improve your life is your first step toward success, happiness and financial freedom. FREE Resources for your MLM Success - http://mlmsuccess.weebly.com What's New?... blog comments powered by Disqus Partner Sites.... Home Business Millionaire Wealthy Internet Entrepreneur My Success Secrets Web Site Traffic Generation Is Earning Passive Income Ethical? Is Earning Passive Income Ethical? |
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