Active vs. passive income

Active vs. Passive income

Mainly there are two ways to earn money Income Source -

first -direct

second- indirect.

 In English it is called

1. Active Income or Direct Income and

2. Passive Income or Indirect Income.

Direct Active Income- Active Income is what you earn yourself. In other ways, the amount you get in exchange for the sweat you shed is called direct or active money.

It can also be understood that if you are a shopkeeper, the longer you sit at the shop, the longer you are able to sell goods to customers and make money, then it is an active income. You have earned money in this way of earning money, but you have also given something on your behalf, such as Invest in the shop, Time given by you. This is also applicable in the job. Of course direct money is essential for our life, it keeps us connected with life and hard work but it cannot make us prosper. Because we have paid for it.

Another way

Indirect Passive Income- This method of getting rich is easy and effective. It is not that you do not have to invest anything in it, in fact, you have to invest to get this money, but after that the investment itself becomes rich.

"One should never depend on a single income, one invests to create another source of income."

- Warren Buffet Warren Buffet

Indirect Income can also be considered as - Rent received from your house or shop, royalty received through a book or song sung by you, income from advertisements placed on your website, your income By the money invested in a good company in the share market, compound interest on money invested in banks or other financial institutions, any commercially purchased plot that is at a good location, your All the money earned for you by the employees working in subordinate shops, restaurants or business, all comes under Passive Money. And to be true, this is the wealth that provides financial independence.

Why Passive Money is Necessary- Friends, if you want to hang out, fulfill your other hobbies then it is necessary that you should have the means of passive income. Suppose you are a businessman

And run the business alone at the shop. You want to visit Andaman and Nicobar but your shop will be closed during the time. What will happen in this situation? You will roam, but you will have the disadvantage of keeping the shop closed and it is certain that you will not be able to enjoy this worry. What do you think that if Sachin Tendulkar's house was spent on sports, would he have got such a good game? Probably not. (Sachin Tendulkar considers the game as his hobby and that is why he can make so much progress in his field.) Sachin Tendulkar has many restaurants and other investments from which he keeps earning income and can focus his attention on his game without any worry. . Moreover, even before the age of forty years Sachin Tendulkar is earning lakhs of rupees every year even after retiring, the reason is passive income. Passive money is also necessary because every person dreams of doing something in their life whether it is to roam the world, write a book, play a game or start a business. But as we get older, new troubles join us, leaving our dreams behind. But if we later take care of fulfilling these dreams in our mind then firstly a concern emerges financial freedom. We are not able to do everything that we wanted to do except our current business and job, but the income income is the means that will give you financial freedom at every stage of your life and will support you to fulfill your hobby.

So try to make such a means in life that you have a Passive Income. Believe that this method is right and keeps you worry-free life as well as prevents you from any kind of financial problem before retirement and after retirement.

 “If you don't find a way to make money while you sleep, you will work until you die-Warren Buffett