What is wrong with Passive and Residual Income?

There is nothing wrong with it. I don't have a problem with the way people earn their money, as long as they don't exploit people in the process. I don't have a problem with Oprah earning 264 million a year. I don't have a problem with Madonna earning 45 million a year. I don't have a problem with any artist earning that sort of money. But it is hard to justify any company CEO being paid 4 million a year + bonuses. Most people who live from paycheck to paycheck, do so because the paycheck does not leave them anything to invest for the future. I do have a problem when Australian banks turn a 8 billion profit while ripping off their customers with all sort of fees for withdrawing their own money from a teller machine.

Investing money in a business makes you more money -- at the expense of the customers of that business. Making record profits means you are gouging customers by charging much more for your goods/services than they cost you. Residual income also depends on the "paycheck to paycheck" people spending their money, not on investments, but on whatever you wrote/composed, etc. It is not possible for every person on this earth to make money in this way, because money does not appear out of thin air. Investments do not "magically" make money -- it all comes from somewhere, and someone, else. So, the people who have figured out how to have their "money make money" do not want the secret to get out -- or it would no longer work because no one would slave for a paycheck (which is what makes them money.) So as we are growing up we are taught to believe that the rich are all theives and "honest people don't make money that way." So we are reluctant to make money that way ourselves. Also, there is a big fear in taking a risk. We are envious of those who take the risk, but don't want to admit it, so our shame in our own fear turns into a feeling that it is actually the risk-takers that are shameful.

i don't really know why people look down upon Passive and Residual Income either. its a good way to be more financially secure if one can attain it some way. why care if people look down upon it anyway. let them live paycheck to paycheck and while the smart people the smart money. why look down on it when you can possibly get a piece of the pie?

Whatever name or label you give it, to me it is income. All types of income is welcomed. Obviously income such as royalty payments is best as we can have it coming into our pockets as long as our product is commercialized and bring income. Other forms of income apart from bank interests and dividends may have to be earned by daily labour.

Yeah passive income is really a good way of earning money. Like you I don;t understand why people would not like it as well. But people sometimes want to keep on working, and instant gratification with the paychecks come with the fastfood lifestyle we have become accustomed to. Most of all its hard to earn passive/residual income, it takes a lot of hard work. maybe some people just don't have the desire to work hard without getting their rewards immediately. As residual income is hard to measure.

ParaTed2k, I really enjoyed your post. I find that social conditioning and societal traditions/norms have caused so many people to believe in the fantasy of security that comes with a conventional job position and paycheck. At the same time, these mechanisms have engineered a culture that shuns creativity and change. I completely understand the problems associated with lack of diversification and preparation for our financial futures. Today's economic landscape has ensured that many others understand them just as well as, if not more than, I do. Just as another poster said, income is income, regardless of what term is attached to it, and should be welcomed. However, ethics should always play a part, as well, in the ways in which a person decides to generate that income. I think, based on the recent history of unethical behavior by some wealthy individuals, the resentment of those that make money "without working" is understandable. However, I believe the residual/passive income concept is neither fully understood nor appreciated, by many of its naysayers. There are many successful and honest people out there making income from multiple sources, without exploiting other people. In fact, they've built their entire reputations on educating and informing their "customers" about products and services before they ever make a purchase. This "club" of supporters and practitioners of the residual income lifestyle includes: Ken Evoy, Lisa Irby, Eddy Salomon, and Rob Rammuny, among many others. Check them out. It just goes to show you that you don't have to be a Fortune 500 CEO, a slick talking marketer, or a genius to break free from the "check-to-check" dependency of the "real world." Also, it does not mean that hard work was not a factor in the successes of these people. For most of them, it took several years to see any real momentum, but persistence and an open mind kept them focused and made the journey worthwhile and that much more rewarding. Maybe if more people would adopt a similar attitude towards their overall careers and lives, while acquiring some added knowledge about business and investing, they would be in a better place to weed out opportunities to afford the dreams they seek to follow.