Active Income vs. Passive Income

[raaman]

Active Income vs. Passive Income.

Depending on the activity you choose or consider for your online desire to earn some money, there are two ways in which you can earn money online, as active or passive income. Let us see their differences:

Active income: it is the income that you receive after carrying out an activity, such as selling your products or services on the internet. When you create a design, write a blog post or an article, or develop a niche website for a client, you will get paid for the work you have done and the time you put into it. In this type of income, when you don't work, you don't receive any income.

Passive income: they are those that are generated continuously after having carried out an initial action, but that does not require your time or dedication to continue receiving it from then on. Some examples can be creating an online course, doing affiliate marketing or monetizing a website with appropriate advertising.

There are more than thirty-five different ways to earn money online as active and passive income that really work. Some involve building your own website, but you will also find methods that are used by existing platform audiences. ​

 

[Augusta]

I will always go with Passive income streams as it offers more flexibility and the potential for greater long-term financial freedom. you just have to set it up and keep it running.

The thing is that with passive income, an individual can earn money without actively trading their time for it, so this will allow one to pursue other interests or even retire early to do other things.

Passive income do have the potential to earn more money over time. You have the time to even other investments that you can grow and make it even appreciate more in value as the years go by.

 

[kazafi]

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.

 

[Chibson]

There is a clear difference between active income and passive income. If you want to make money actively then you can choose businesses like freelancing or starting some kind of petty businesses that requires you to be active before you can be able to make money.

It is important for you to know that before you can be able to build passive income you must be active for some years and try as much as possible to put in some years of hard work and consistency for you to become successful on the long run.

Building passive income is actually not easy but on the long run it is very much enjoyable.