The main difference between passive income and active income is that passive income is the money you earned with an investment you made or previous work you did that does not require any additional effort to continue generating more money. On the other hand, advice income is the money you get after doing services such as salaries, commissions, or even tips.
Passive Income
Passive income would be the ideal income stream for everyone since in this one you just need to put some effort in the beginning that will keep generating income over the years and this will help you to sustain your lifestyle and help you pay your bills for a long time.
Ways to make passive income
Everyone wants to generate money while focusing on some other tasks, and here are three examples of how to make passive income.
Investment Income
Rental Properties
Advertising
Active Income
As we mentioned before, passive income is the ideal income stream, but active income is also very important. Actually, if it was not because of active income, a lot of people would not have the chance to get passive income, since it requires earning money to invest first.
Here we will be listing three examples of active income:
Tips
Commissions
Salary
Wrapping Up
Passive income is important because basically, you don’t need to put effort into getting money just like with active income, but both kinds of income are essential because in most cases, passive income would not exist without active income.
