What Passive Income Is, Compared With An Active Income?

Photo by Austin Distel on Unsplash


Passive income is a topic that's very interesting for so many people. So what is passive income really is?

Passive income is a type of income where you can earn money without you are actively involved, wherever you are in the world and regardless of whether you're actually physically working or not. That is what passive income definition.

These days, many assume that people who can successfully made passive income and earn millions of dollars by doing nothing think that they are a few lucky people, because they don't have to do anything, therefore they can live free and do whatever they want.

But the truth behind all the success for those who already enjoyed passive income is that this kind of income or easy money is not something that can be easily achieved, in the process of those who made passive income, they have been through a very rough journey.

Passive income is not easy generate, passive income or financial freedom really is a dream for so many people but only few of them who can make it. Most people will only have active income, mainly from their day job as an employee.

So active income is pretty straightforward, it is what most of us know the model of income where you go somewhere and you trade your hours for a certain amount of money, you work for a certain amount of time and your employer will pay you per hour for the amount of time that you worked.

Active income because you should participate in the process of earning it, make it not scalable, your number of hours in a day will be spent to generate the money, The money you made equals the time you spent.

The amount of money you can earn in a day with an active income is limited, whereas a passive income we can do other activities and you still make money, you have free time and free money.

Active income is where you just trade your hours for money, it's actually where you put in a lot of hard work and a lot of hours upfront. So when you are not doing the work, you won't get paid, but then once you've finished the work then it starts to generate you money.

There are different ways of generating passive income, and the longevity of that passive income is different depending on what you've done. For some forms of passive income when you finish work on it, then it can literally keep making you money for the rest of your life literally without you doing anything, just maintains your works to keep alive and people still can access it.

An example of passive income is let's say writing a book, you don't get paid for writing the book, it can take you a very long time to write it, but once it's done, then it's succeed, The book will just keeps selling from that point on, you will get passive income from the royalty of that book, after that you can keep busy with other activities, maybe write another book, so you can have multiple passive income.

Think for example like the Harry Potter book franchise. How much do you think JK Rowling, the writer of the book, still gets from that franchise she created at awhile ago?

How much JK Rowling gets passive income from just the first book Harry Potter and the Philosopher's Stone. Just by the first book from 1997 until now, how much do you think JK Rowling made from that point to 2020?

Now, she doesn't need to do anything since then, the income is just keep flowing to JK Rowling's wallet, and she can do whatever she wants, she put a lot of hard work the first time making the Harry Potter books and now she can reap what she deserves for infinite amount of time probably.

But not just become a successful writer you can earned a passive income, fortunately this internet ages give us lots of potentials to generate an income from the internet, and hopefully it will be a passive one.

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