As published on WealthUp:
In essence, we all need to find at least one source of income that doesn’t require active labour or management. This is to account for various factors, such as:
- Our inability to continue working indefinitely, and reduced income as we age
- The possibility of sudden circumstances, such as disease or illness, which hinder our capability to provide for our families
- Our employer or business closing down (the current Covid-19 situation is a demonstration of how suddenly this can happen)
- A simple lack of time, as not everyone has the hours required to analyse a particular stock or track market movements