Why active income is better than passive income

[King bell]

There is a lot of talk about income whether it be passive or active. Passive income is money generated from investments, such as stocks and real estate, where you receive a fixed amount of money each month with no work on your part. Active income is money made through labor or business efforts by involving time, effort, and risk. It can also refer to your regular salary or revenue that comes from active involvement in the company.

There are different variations of what constitutes passive versus active income but most people agree that either one can make you more wealthy than the other if implemented correctly.
Active income is better than passive income in that the source of your income comes from something you initiated. Whether it is a job you took or a business idea you created and gave birth to, it is something you had to do.
Active income requires action and effort whereas passive income requires little to no action on one's end. Another reason why active income is better than passive income is because passive income has restrictions. It may seem easy to invest your money and have it sit there gaining interest but most of the time there are certain restrictions on what can be done with the money.

 

[Yugocean]

From my side Active or Passive anything is better, I am not in favour of dividing the way of earning. But active income is important, because it motivates us to remain active, human body needs activity to keep itself healthy.
Passive income is fine for disabled and retired people, they can have other type of activities to keep body healthy, and also earn in a way which is very much necessary for them.

 

[CarlB]

There is a lot of talk about income whether it be passive or active. Passive income is money generated from investments, such as stocks and real estate, where you receive a fixed amount of money each month with no work on your part. Active income is money made through labor or business efforts by involving time, effort, and risk. It can also refer to your regular salary or revenue that comes from active involvement in the company.

There are different variations of what constitutes passive versus active income but most people agree that either one can make you more wealthy than the other if implemented correctly.
Active income is better than passive income in that the source of your income comes from something you initiated. Whether it is a job you took or a business idea you created and gave birth to, it is something you had to do.
Active income requires action and effort whereas passive income requires little to no action on one's end. Another reason why active income is better than passive income is because passive income has restrictions. It may seem easy to invest your money and have it sit there gaining interest but most of the time there are certain restrictions on what can be done with the money.

Passive income, or residual income, is income that is regularly generated with little effort. In contrast, active income is income that does not require continuity of efforts. The difference is that with active income you have to keep working on it and make an effort to earn that extra money or that is not happening at all.

Passive income is better than active income because it is more secure and consistent. Active income is earned as you work, while passive income is earned while you sleep. This means that you don’t have to put a lot of work into it, but you have to have a very good knowledge of the space that you’re working in.
Passive income requires less time and less effort to maintain it. Active income requires you to write content about relevant topics or blogs regularly, or to create and sell products on your site. It's not a simple task and requires a whole lot of effort on your part.
But in some cases, active income can lead to passive income (e.g. selling an information product creating a membership site).

Nevertheless, both are important and necessary. Passive income helps you build a solid financial foundation and active income helps you meet your daily expenses. If you are just getting started, then the first thing you should do is to find a source of passive income. It will provide you with the financial security you need in the form of cash flow while you are busy building your business or while you go looking for a job.