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Active Income Definition

Active income is what most of us work for each week. In other words, it is effort put in for income earned. Thus, input is directly related to the output received.

On the other hand, residual or passive income is income which is earned even when the work is completed. This comes from building assets, which pay out long after you’ve completed the work.

Active Income Examples:

Active income can be seen in the form of a weekly paycheck, tips, commissions or income from a business that you actively contribute to.