A concept that is likely as old as civilization itself is income – which can be defined simply as one individual’s money earned for a service that has been provided to another individual or entity. But did you know that there are actually two forms of income one can earn?
The way most people understand income to be is known as active income. This is when an individual is trading their time, work or skill to earn a lump sum of money or paycheck. In contrast, passive income is when an individual provides their time and or skill for money only once to create multiple returns on the work/time they’ve used to create the stream – for example, using time or money to create a product, service or investment one time that will yield profits many times over, without any additional work.