What is passive income, and how does it differ from active income?

[Desireu30b]

Passive income is money earned with minimal ongoing effort after the initial setup.
It flows regularly from sources such as investments, rental properties, royalties, and digital products.

Active income, on the other hand, requires consistent effort or work to earn, like a traditional job. While active income ceases when work stops, passive income continues. Creating and managing passive streams demands effort upfront, but it offers potential for greater financial freedom over time.
LEARN DEAR
#DESIRE

 

[Bisolami]

Passive income is money earned with minimal ongoing effort after the initial setup.
It flows regularly from sources such as investments, rental properties, royalties, and digital products.

Active income, on the other hand, requires consistent effort or work to earn, like a traditional job. While active income ceases when work stops, passive income continues. Creating and managing passive streams demands effort upfront, but it offers potential for greater financial freedom over time.
LEARN DEAR
#DESIRE

The major difference is that you can make money while working on active income and that is only how to make money while you don't even have to work before you earn on passive income.

 

[eldavis]

The name alone says it all. Passive income mainly has to do with earning without any effort while active income has to do with you working hard to earn your money.

 

[Suba]

Passive income is a type of income that only requires a little activity, such as returns from investment instruments that you own, stocks, staking crypto, bonds, deposits, mutual funds, receiving rent, there are also opinions that classify passive income as part-time work such as freelance, stock trading, etc. Meanwhile, active income is generated from main work, such as being an office employee, factory worker, offline trader, etc.

 

[uptrendfinancialsignal]

Passive income is a kind of money that you earn with the input of minimal effort or active involvement . A typical example of a passive income is rental income, dividends and if you earn from royalties.

 

[Reedex]

It is crucial to note that a passive income would require initial investment or effort but it can generate income for you over a long period of time with little involvement.

 

[uptrendfinancialsignal]

What is different from active and passive income is that an active income stops immediately you stop working, whereas a passive income will continue to give you money even if you are not actively working on it.

 

[Reedex]

The passive income investment include stocks, bonds and also in a rented property . You can also make huge amount of income passively from creation and selling of digital product.

 

[uptrendfinancialsignal]

Active income get you paid for working for some certain hours but passive income is more scalable because it gives you money without time and you can earn you huge amount of income in numbers of several of hours.

 

[Reedex]

Building a passive income streams requires patience and it also require you to invest time . It is a long term investment strategy that will make you huge income over time.

 

[uptrendfinancialsignal]

Active income is reliable and it is always immediate while passive income will take a long time to build and may also involves some risk but it depends on the types of business.

 

[Reedex]

A typical example of active income are salary from job, income from freelance work or the profit that you made from actively managing your business . It is a very reliable way to make money.

 

[saoussen5765]

A typical example of active income are salary from job, income from freelance work or the profit that you made from actively managing your business . It is a very reliable way to make money.

The salary from a job in all the cases is not enough for a month spending that is why the most people working a job are doing freelancing staffs because if they still limited to salary from company then they will be in difficult money situation and goes to money borrowing with a fee from borrowers or banks.

 

[eldavis]

A typical example of active income are salary from job, income from freelance work or the profit that you made from actively managing your business . It is a very reliable way to make money.

True, in other word active income has to do with you working hard to get your earnings while passive income requires effort as well but less effort in other to earn.

 

[saoussen5765]

True, in other word active income has to do with you working hard to get your earnings while passive income requires effort as well but less effort in other to earn.

But this feature is not for everyone as many people think, not everyone could have income from passive income or the capabilities that result this.

 

[Rubz]

Passive income is the money one earns without actively working for it. It is different from active income because one does not need to work daily like in active income.