Active Income vs Passive Income

Income is defined as how someone manages to earn or make money. But there are two ways of making money. Below are two the two different type of income:

Active income - Money that you must physically work for it, such as your day job.

Passive income - Money that you will earn without you working for it. such as interest in your saving accounts or dividend from an investment.

Earning active incomes

It is not hard to earn active incomes. Some of the most basic works that you can do are:

1. find an office job.
2. work at a fast-food restaurant
3. Drive for Grab

In the abovementioned examples, if you do not show up for work, you don't get paid.

Earning passive incomes

To earn passive incomes, you would have to first earn active incomes and invest some of it into assets that would provide you with passive incomes. A few ways of making passive incomes are:

1. invest in stocks and earn dividends
2. earn interest from your saving accounts or fixed deposits.
3. start a blog and earn income through affiliate marketing or advertisements.

It may take some effort to start earning passive income but once everything is set up, not much effort is required for it to continue providing passive income for you. 

Passive income and me

For me, it is very important to continuously work on increasing passive income because I do hope that there would be a time when I can actually retire and would not have to worry about getting income to support me and my family.

At the moment, I have a day job that I am happy to work in but the only constant thing in this world is change. So, I would not know when I would need to change but it is good for me to set up my passive income first. I sure hope that there would be a day when my passive income would replace my active income. That will be the time when I have achieved financial freedom.