What is Active vs Passive Income?

Active income is any income earned by trading time for dollars.

Wages, Salary, Tips, and Commission are all considered to be ACTIVE Income

Passive Income is the most sought after form of income and can be earned in a number of ways simillar to Active income

Passive income is money that is earned without you having to do anything. Examples of Passive Income are :

Interest, Dividends, Rent, Royalties, etc.

Interest can be earned by Loaning money to People, Businesses, and even the Government!

Dividends are a form of passive income that is generated by owning equity in a business, when Mcdonalds makes a profit the owner and share holders all receave a portion of that profit in the form of a dividend.

Rent can be an easy way to make passive income and it doesn't necessarily need to be a home you're renting. More affordable options to earn passive rent income are to rent tools, equipment, or spare space in the apartment or home you're already in!

Passive income in all of its forms always requires either a lot of money or time at the very beginning to make it worth while, without one of these two investments you will likely be working and earning Active income.

---

Send in a voice message: https://anchor.fm/wesley-caruso/message Support this podcast: https://anchor.fm/wesley-caruso/support