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Business Strategy with Hirav Shah SEPTEMBER 29, 2023 | The Indian Eye 48

Passive Income vs Active Income

Spend 15 hours / week for improving your passive income

HIRAV SHAH

hile active income can There are many ways to generate passive income streams, including investing in stocks or real estate, creating and selling digital products,
provide a steady source of
Wincome, it can also be lim- renting out property, and affiliate marketing (Representative/File photo)
ited by factors such as job availability, able as active income.
market demand, and personal time availability, market demand, and job or income from a business. • Additionally, passive income
constraints personal time constraints. • The main advantage of active in- streams may require ongoing
• Passive income is a type of income come is that it is typically more re- maintenance or management to
that requires little to no effort to What is Passive Income? liable and predictable than passive ensure continued success.
earn and maintain. income.
• Unlike active income, which is • Passive income is income that is • It also allows for more control over • How to Generate Passive Income
Streams.
earned without active involvement
earned through direct work or ser- or effort. the amount of income earned, as • There are many ways to generate
vices, passive income is generated • This can include rental income, it is directly tied to the amount of passive income streams, including
through investments, rental prop- investment income, royalties, and time and effort put in. investing in stocks or real estate,
erties, and other sources that re- affiliate marketing commissions. • However, active income is often creating and selling digital prod-
quire minimal ongoing effort. limited by time constraints and can
• In this guide, we’ll explore the ben- • Passive income streams require an be subject to job loss or business ucts, renting out property, and af-
filiate marketing.
initial investment of time or money
efits of passive income, how to gen- to set up, but can continue to gen- failure. • The key is to find a method that
erate passive income streams, and erate income with minimal ongo- • It also requires ongoing effort to aligns with your interests and skills,
how to achieve financial freedom ing effort. maintain and grow, which can limit and to put in the effort upfront to
through passive income. flexibility and free time.
• Passive income can provide finan- • Pros and Cons of Passive Income. set up the stream.
What is Active Income? cial freedom and flexibility, as it is • Passive income has many advan- • It’s important to remember that
• Active income is income that is not tied to a specific job or profes- tages, including the potential for passive income is not truly passive,
sion.
as it often requires ongoing main-
earned through direct work or ser- • However, it can also be subject to greater financial freedom and flex- tenance and management to en-
vices. ibility.
sure continued success.
• This can include salaries, wages, market fluctuations and requires • It allows for income to be earned • However, with dedication and hard
careful management to ensure
tips, commissions, and bonuses. without ongoing effort or time
• Active income requires ongoing continued success. constraints, which can free up time work, passive income streams can
provide a path to financial freedom
effort and time to earn, and is typ- Pros and Cons of Active for other pursuits or allow for a and flexibility.
ically tied to a specific job or pro- more flexible lifestyle.
fession. Income. • However, passive income streams
• While active income can provide a • Active income is income that is often require significant upfront The writer is a well-known
steady source of income, it can also earned through active involvement investment or effort to set up, and Astro Strategist and Business Astrologer
be limited by factors such as job or effort, such as a salary from a may not be as reliable or predict- Email: [email protected]

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