What is the difference between active and passive income?

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asked Apr 19 in Other-Finance by Shoomway (380 points)
What is the difference between active and passive income?

1 Answer

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answered Apr 19 by Adf289 (28,580 points)
Active income is where you receive the income for services performed such as at a job where you receive a wage or salary or tips for anything you've done.

Passive income is income where you're not involved or having to do anything to make the money.

An example of passive income is a rental property where you have someone else do the management of the property and you collect the income.

You can also earn passive income through blogging through advertisements, courses etc where you don't do much to receive the income.

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