JA Westenberg12h ago

The passive income movement was a fantasy about not having to give a shit. This is a terrible foundation for pretty much anything.

https://www.joanwestenberg.com/the-passive-income-trap-ate-a-generation-of-entrepreneurs/

The "Passive Income" trap ate a generation of entrepreneurs

I had coffee last year with a guy - I won't use his real name - who told me he was "building a business." I asked what it did. Dropshipping jade face rollers. I made him say it twice. Jade face rollers. He'd found them on Alibaba for $1.20

Westenberg.
Show threadAlrecenk
@Daojoan I live on passive income. I got it by pursuing an advanced degree, getting really good at what I do, and then working 60 hours/week for someone else while saving 75% of my income for several years, which I used to buy index funds. I wish I could say I provided meaningful value during that time, but that'd be a stretch. I'm trying to do meaningful work now, but it doesn't pay well, hence the living on passive income.
8:54amWeb
Show threadStylus2h ago

@Alrecenk @Daojoan

I'm very happy for you, and I say this as someone in the US who is in a similar position through high personal household savings placed in index funds (broadly, the principles of the "FIRE movement") .. but today I believe this method only could have worked for a small number of people during a narrow time window. Speaking for myself, it helped to begin from a white and middle class position and I had 2 or 3 major lucky breaks along the way. Not to mention that I was comfortable choosing a childfree existence. Never experienced an expensive relationship breakup or cross country move. etc.

Today it's harder to get an advanced degree without substantial debt, the job security & compensation of the industry where I worked (sw dev) is comparatively much worse, costs of housing & food are rising, etc., etc.

Not to mention now my income is tied to "stock market line go up" in a way that frankly gives me the willies.

On the other hand, the FIRE movement as I experienced it never urged people to spend money they didn't have. If you were buying index funds, you were doing it with money you earned and didn't spend on something else. But you might, like Jade Faceroller guy, end up "down" depending what the markets do and what time horizon you are considering.

.. but over time, do you think the markets are becoming MORE or LESS like making an investment into 500 faceroller guys? some days I really worry.