Thursday, October 03, 2013

Active and Passive economic roles in life

My main economic role in life is getting a job and receiving a wage.  Or, if I start my own company and work independently I expect to receive compensation for that effort in the form of profit.  This is my ACTIVE role.

At the same time, in parallel, is my PASSIVE economic role.  That is saving and investing through time.  Each day that I actively work my savings are working, too.  While I am waking or sleeping my money is working for me.  I don't see or touch it.  But I know it is capital that is being used by others and I will get a return on that capital.

The best investment I can make is in my education to further my skills and obtain more active income.  However, I will not forget that my passive income needs to be working alongside me at all times.  To do that I need to save and invest.  I play both active and passive economic roles in life.

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