ACTIVE INCOME VS. PASSIVE INCOME
There are two types of income streams that exist. There’s Active Income and Passive
Income. Active Income is any type of income stream
that is generated in exchange for your time or effort. The moment you stop putting in
time or effort, the income comes to a halt. You have to consistently work hard to earn
an active income. The best example of active income is having a typical job. With a job,
you spend X number of hours at the workplace and in exchange you receive a pay check for
those amount of hours. If you stop working for that job or get fired, you immediately
lose that income stream. Passive Income is an income stream that is
generated after only working hard once. Once you’ve invested your time and efforts to
create the passive income stream (an online business), your job is done. The income generated
by the automated systems that you’ve set up will produce a consistent passive income
for you without any real-time presence. You will continue to receive income for the rest
of your life, even while you eat, sleep, travel the world… or even die. “If it’s not residual income then don’t
do it, because it takes you to slavery, not to freedom.” – T. Harv Eker The concept of making passive income is commonly
taught by authors such as Robert Kiyosaki of Rich Dad, Poor Dad, as well as T. Harv
Eker of the Millionaire Mind Intensive. While I learned much from both of those guru’s
of the idea of earning passive income, it wasn’t until I read The 4-Hour Work Week
by Tim Ferriss that really drove it home for me. Ever since I did, I’ve committed myself
to becoming financially free. Financial freedom is when your passive income
exceeds your expenses. by Shaun Ling & Moon Cheong
