Ah interesting how they classify the types. I always viewed the second and third type together as "investment income", but I think they kinda classify one as interest/dividends (realised) and the other type more like capital gains (mostly unrealised unless you sell).
Actually I feel that nothing is really "passive" at the end of the day. Everything needs some form of due diligence and monitoring, just that some require less and some require more. Even HBD is not always 20%, and it might change any day.
You are right that most people seem to only view work income as the only source of income. I remember when one of my colleagues retired early in her late 40s, everyone was shocked "how would she survive if she didn't have a job and a monthly income", but I sort of know she had it all planned out. She probably have saved up well, invest well, and have assets that generate enough income for her lifestyle, and hence, why would she then need to spend 40 hours every week slogging at the desk.
!LUV
Love your story! You should go deeper into details and create a post about it! It could inspire and motivate people to think differently, to prepare themselves!
Hahaha I try to avoid talking about personal finance sometimes, because everyone has their own way of saving and spending. And I am not qualified to give financial advice too. Haha.
It's not personal, it's about your friend... You don't have to share names... :)
Ah hehe! Will think about it!