Passive Income vs. Active Income: What’s the Difference?
Passive income and active income offer two distinct ways to earn money. Active income requires ongoing effort, like salaries and freelance gigs, while passive income, such as rental properties or dividends, generates earnings with minimal effort after setup. This article explores the pros and cons of each income type, explains key differences, and provides tips for combining both to create a balanced financial strategy. Whether you’re looking for immediate cash flow or long-term growth, leveraging both income streams can set you up for success.