King bell
VIP Contributor
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.
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.