How Active Income Differ From Passive Income

What is Income?

Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms.

Types of Income :

There are 3 types of income.

1. Active income

2. Passive income

3. Portfolio Income

We only discuss Active Income and Passive Income here to learn difference Between them. 

So let's Get Started......

Active income :

Active income is the income that you get by actively engaging in any mental or physical activity. This money is given to you in return for your hard work, i.e. you will be paid as much as you work. Whenever you stop working, your income will stop coming. If you ever get sick or have to quit your job for any reason, you will have no other source of income.

In active income, your time is money. As long as you give time to your work, you will earn income. When you quit your job or are fired for any reason, you will only have to rely on your savings, after which you will have to live a difficult life.

You can only show your skills in what you are doing and you won't have time to learn any other skills. Which is why most of your time is wasted on learning new things twice when you have to do something new again. One of the reasons is that you can't learn anything new while working at the same time. Most people do not try to learn new skills again after learning a job because they become experts in their work due to constant work and like to continue the same work.

Passive income :

In passive income, on the other hand, you do not need to be actively involved in any work. In passive income you have to work for a very short period of time and you can generate income from it for the rest of your life. You will continue to receive this income without any reduction. With the help of which you can achieve all your goals.

You can generate a monthly passive income by renting a house or shop. You can also generate income by doing online jobs and using other websites like YouTube, Facebook etc. and other resources.

In passive income you have enough time to do your job as well as learn something new. Which you can use to generate more income. Which you will continue to receive even if you do not work for a couple of weeks. You have to work hard in the beginning then you can work comfortably and generate income.