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Active Income vs. Passive Income
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[QUOTE="kazafi, post: 309535, member: 99012"] Active income refers to income earned from performing a specific job or service, where the income is directly proportional to the amount of time and effort invested. This could include working a 9-to-5 job, freelancing, or running a small business. Passive income, on the other hand, is income earned without actively working for it. This could include income from rental properties, dividends from investments, royalties from creative work, or revenue generated from an online business. In short, active income requires ongoing effort to earn, while passive income can continue to generate income without active effort over time. Building a portfolio of passive income streams is often considered a key strategy for achieving financial independence and freedom. [/QUOTE]
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