Understanding the Concept of Demand and Supply
I believe most of us know what is Demand and Supply in Economic theory; but allow me to take it a bit further into passive income.
How do we get paid for passive income?
Read? Saving, Lending and Investing (3)
For interest on saving, coupon on bonds, dividend on stocks, we are in the Demand side; but NOT in the Supply side of getting paid for our capital. We basically demand yield and that is all about it.
However; for rental on properties it is different, we are in the Supply side; but NOT actually in the Demand side of getting paid for our capital. When we supply, people are expecting us to provide some level of basic services to meet their demand (expectations). Some unexpected demand can sometime drive us nuts. Similar to some nasty internal and external customers and bosses at our workplace with their unexpected demand are driving us nuts too.
See the big difference between Supply and Demand of getting paid for passive income. I rather stay in the Demand side.
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