Tuition Teacher
Becoming a tuition teacher is the easiest way to add some income to your monthly input. As most people think that income from tuition is a form of passive income. So do I, thinking that giving tuition during free time is a form of passive income. What do you think?
From my experience, I realize that giving tuition is not really a passive income instead part of your active income. So what is the definition of passive income? Passive income means income that come in without much effort putting in. The best example of passive income is interest from fix deposit. Do you need to do anything in order to get the interest? No. What you need to do is just go to the bank and deposit it.
How about tuition teacher? You need to spend your time to teach in front for one or two hours. You are consuming your energy, mind and body to finish the work, just as what you do for your active income. You need work for it. As a tuition teacher, if you do not teach, you do not have any salary.
This is not the way how we build up passive income stream. Being a tuition teacher can just only increase your monthly income. If you do not use it smartly, the money will only say goodbye to you. This is what I learn from this two weeks after giving tuition at night although I was very tired.
Any income that requires your time to earn it is not passive income. Passive income shall also come in regular basis or else we should call it one-time-gain. Therefore, Interest and dividend are passive incomes.
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Mrcoolku Reply:
January 23rd, 2010 at 10:01 am
Ya, you have better explanation of passive income, “any income that require your time to earn it is not passive income”.
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Hi, I am Vedis here.
As a former full time tuition teacher, I have to say that income from tuition is not a form of passive income.
You have to teach in order to get the money. If you are sick and you cancel your class, there goes your money.
If given a chance, I don’t want to be a tuition teacher again. Thinking of the pain I have to go through in the tuition class when there is a spot/two spots of mouth/tongue ulcer is simply scary!
There were many times that I couldn’t cancel my tuition classes when I had mouth/tongue ulcer. Why? Because I needed the money to pay the bills.
It’s really hard-earned income, not passive income that you can generate during your sleep.
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Mrcoolku Reply:
February 13th, 2010 at 11:00 pm
Thanks for your sharing. Totally agree with you after experiencing it. We need to turn the active income into the passive income through investing.
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I did thought of giving tuition too. But I realised that giving tuition isn’t passive income. On the other hand, if you own that tuition center and other teachers teach there, you are making a passive income.
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Mrcoolku Reply:
February 21st, 2010 at 1:00 pm
Giving tuition is an easy way to increase active income. We need money to generate passive income. So, although I know it is wrong way, but i still keep doing it because i need money to generate more passive income.
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