Are your income Active or Passive?

What sort of income are you earning? Is it Active or Passive? Or both?

If your answer is Active, you might want to take a serious look at it. If is Passive, good for you.

Why the heck do I have to know whether my income is Active or Passive? What's the diff?

Well, let us look at what are they:

Active income - Is also called Linear Income. This is that kinda of income that the majority are earning. That is trading your time for money. You only get paid for once for the effort you put in. Examples will be employees working for others. Even professionals like doctors, lawyers, & accountants falls into this category. Surprised? Don't be! Just ask yourself this questions, how many times does a patient paid to see the doctor? Once or many times?

Passive income - This is sometimes called recurring or residual income. This is usually income that keeps flowing into your bank account irregardless whether you are present or not. Imagine how many times JK Rowling was paid for Harry Potter's books, movies & merchandises? Over & over again. She created Harry Potter only once, but was paid overtime for years to come. Wow, that's wonderful, isn't it?

So, which one are you earning? If you have the intention to create wealth & attain financial freedom, you need to have passive income. This is because you will have the option to trade humans most scarcest resources, i.e. TIME. With passive income, you'll be able to have the time freedom to do whatever, whenever, wherever you desire because financially you have no worries as the money will still come into your bank account with or without you. That's the beauty of passive income.

So, what are the passive income available? Well, stay tune! I'll be with you the next time.