Why many people underestimate the potential of passive income
By investing in stocks and bonds , I was able to reach a passive income level of about $300 per month this year.
At first glance, this amount seems insignificant when compared to your current salary or daily expenses. However, it's important to keep your finances in perspective.
If we take as our starting point not current earnings, but the size of our future pension, which is inevitably approaching, the situation changes dramatically.
My youth fell in the nineties and 2000s – a time when official employment was the exception rather than the rule.
As a result, by the time I retire, my insurance record will likely be no more than 20 years. This means I can count on a state pension of around $100, and possibly less.
This is where my “small” passive income starts to play a decisive role, increasing my overall budget several times over.
Relocation as a strategy
The amount of money needed for a comfortable life depends directly on where exactly you live.
I'm currently in Poland, and the cost of living here is rising every year: food, utilities, and rent are all getting more expensive. Poland is gradually becoming less and less affordable in the European Union.
Living here on $400 in gross income (pension plus dividends ) would be extremely difficult, even if you own your own home. In such a situation, moving may be a solution—especially since returning home is always psychologically easier than emigrating to a foreign country.
Using Ukraine as an example, $400 converts to approximately 17,500 hryvnia. The difference in standard of living becomes clear when comparing key expenses:
| Category | 🇺🇦 Ukraine | 🇵🇱 Poland |
|---|---|---|
| Communal apartment (1 apartment) | 35–40 $ | 110–120 $ |
| Transport (1 trip) | 0.35 $ | 1.35 $ |
| A visit to the doctor | from $12 , 2 times cheaper |
from $55 |
| Medicines | 1.5–2 times cheaper | 1.5–2 times more expensive |
| Services | 2-3 times cheaper | 2-4 times more expensive |
| Grocery basket | ≈ 120 $ | ≈ 170 $ |
| 💰 Estimated cost of living | ≈ 330 $ | ≈ 550 $ |
The data is provided for small towns with populations of approximately 100,000. The comparison shows that life in Poland is, on average, one and a half times more expensive. Considering that real estate prices in Ukraine are several times lower, the difference becomes even more significant.
Of course, it's premature to consider Ukraine as a place to return, but the situation may change by the time I retire. In any case, there are other countries where $400 would be a significant investment.
Don't judge the prospects of passive income based on your current level of prosperity. What seems like "pocket money" today may become the foundation of your financial survival in 10-20 years.
I've met many people who bitterly regretted missed opportunities, recalling their former high earnings. To avoid ending up in their shoes, it's better to take care of the future today than to regret the past tomorrow.
