Difference Between “Active Income” and “Passive Income”

We all earn money from various sources. Whether it may be salaried income or Business income, the source of the income is “Active” till you stop earning. What about your income when you retire? There comes the “Passive Income” Strategy.

What does “Active Income and Passive Income” Mean-

As already discussed, Active income is the income earned from the profession, employer(Salary income etc)

Passive Income is the income earned by putting a single effort and thereby generating income thereon! Confused!!Let us explain in detail-

1.If an youtuber puts effort to create amazing videos on youtube, the income earned on the basis of “views” repeatedly creates good source of income month-on-month whenever there is a huge viewership.

2.If a blogger blogs interesting articles on his site, Google provides him revenue on monthly basis.

3.If a house is given on rent, the rental income is Passive Income

These are all “Passive Income” as they create revenue without putting efforts repeatedly

So now you may be aware of Active Income and Passive Income. If you notice the real life stories of the “Rich” People they earn Active Income and create a 2nd source of income(Passive Income).

If you didn’t notice Passive Income Strategy among the “Rich People” till now,carefully watch their business expansion ideas from hereon!

Example- Mukesh Ambani created Sensation with “Jio” Phones and expand his business through Fibernet, Broadband etc. His other businesses includes Reliance Retail Store, Jiomart(Online),Netmeds(Acquired major stake by Mukesh Ambani),Reliance Petrol Pumps etc.

You may say he is a rich person, so he can expand his business! But the real fact is he created active source from jio and generated Passive income from that source.

Warren Buffet also says- “Never depend on single income; instead create a 2nd source of income(Passive Income).

Top Celebrities are creating Passive Income. It is in your hands to create 2nd source of income, so Think over it!!

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