Gasem says:

I think the distinction is not between active and passive income, but between an accumulation motivation and a choice to leave that accumulation motive behind. The accumulation motive is what consumes your time regardless if you are W2 or your own boss. If your move beyond the accumulation motive you reclaim your time. The life styles are very different and the plans and human capital needed to fund the lifestyles are very different. In my cased I have zero interest in making more money. I have 3 retirements worth of money I don’t need a 4th. At some point accumulating “more” just becomes a risk because that’s what your endeavor buys you is excessive risk. Excessive risk is not good, people suicide over excessive risk and too much leverage. My interest therefore is correctly spending what I have accumulated in a sustainable way. My interest is wise portfolio deflation, for that is the reason for the portfolio. Why do I never hear about wise portfolio deflation? It’s always about side hustle this, real estate that, multiple streams of “passive income” which take up 80 hours a week and/or are levered out the yin yang. Even after 10 years 1/3 businesses fail, that’s after the initial 2 year 50% failure rate. Not much passive about failure, and that’s what I mean by leverage. Wise portfolio deflation has it’s own risk management and mitigation that needs to be considered and actually be planned for during accumulation. How you approach that determines things like forever growing tax consequences in retirement, how you will be able to pay for catastrophe which will inevitably occur, and the after math of catastrophe for your survivors.