Codie Sanchez Says Passive Income Doesn’t Exist — Here’s Why
Are you trying to build passive income? By now, you’ve probably heard dozens of different strategies for unlocking passive income, from buying real estate to opening a laundromat.
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However, Codie Sanchez has a unique take, arguing that passive income doesn’t exist. In this article, GOBankingRates will cover two reasons why Sanchez believes passive income is a lie.
Nothing Is No Work
Sanchez’s first argument that passive income doesn’t exist is that nothing is no work. The idea of having to do absolutely no work doesn’t exist.
At a minimum, you need to do the work upfront to get a bunch of money to apply to some other type of income. For example, working until you have enough money saved to invest in dividend stocks that replace your income. This strategy still takes work upfront.
Additionally, someone is working even if it isn’t you. Take a laundromat, for example. You still need staff to run the laundromat, which includes collecting money, cleaning machines and helping customers. Even if you aren’t the one completing the work, passive income still takes someone’s labor. Before you throw in the towel and pursue a “passive” income stream, do your due diligence on how much work is actually needed.
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Humans Crave Work
The next reason Sanchez gives to debunk passive income is that humans crave work.
Most humans are happy to work. Even though most Americans don’t like what they do for a living, they want some type of work. When you’re stuck in a dull job, you would rather do anything else. Influencers exploit this, telling you that passive income will make you happy.
Although sitting on the beach collecting income sounds great in theory, it can be boring. Humans are wired for intellectual growth and forward progression. This makes it important to find something you care about doing that gives you the ability to continue to learn and earn. Passive income isn’t always the saving grace that people believe it is.
The Bottom Line
Do you agree with Sanchez? Finding the right balance between passive and active income is important to live a fulfilling life. For example, you might build a dividend portfolio that supports 80% of your lifestyle but also find a part-time job in a field you love. This keeps you living a fulfilled life.
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This article originally appeared on GOBankingRates.com: Codie Sanchez Says Passive Income Doesn’t Exist — Here’s Why
