There are three different types of income in the world: earned, portfolio and passive, with earned or active income coming from your job, portfolio income coming from capital gains, generally from stocks and bonds, and passive income from real estate.
Active income means that I have to keep working to ensure that the cash keeps coming in. The moment that I stop working, the cash also stop coming in. A job is an example of an active income. The employer will stop paying me a salary if I stop working. The opposite of active income is passive income.
Passive income on the other hand does not require me to work actively for it. I can build a business that can run on its own. Even when I am not around, the business will run because there is a system.
Active income means that I have to keep working to ensure that the cash keeps coming in. The moment that I stop working, the cash also stop coming in. A job is an example of an active income. The employer will stop paying me a salary if I stop working. The opposite of active income is passive income.
Passive income on the other hand does not require me to work actively for it. I can build a business that can run on its own. Even when I am not around, the business will run because there is a system.
For Your Financial Freedom
Lay Peng
P.S: Mr. Robert Kiyosaki has his Rich Dad as his mentor while I have him and other Top Speakers and World Class Gurus as mine.
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