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Active Versus Passive Income

Active income is money earned from your current efforts, e.g. a job. Passive income is money earned from previous efforts. 

Comparing Active and Passive Income

Money is effort , that is a direct return for effort. It can also be a future return of income.

Passive income is money earned because you applied direct effort in the past, interest earned from your job savings, rental property profit, any other investment, or royalties from that platinum selling pop song you wrote back in the 1980s.

 

Further Reading

Passive Income (wikipedia)