Active Income and Passive Income

Active and passive income are two of the ways that one can bring in revenue to support their lifestyles.  Most people may like to think of it as you should pick a side and one could be better than the other.  Well my message for inspiration is why not enjoy both?  Why not enjoy making them work together and build a life that you love to wake up to every morning?

I can say that I do understand where the conformity of this concept of choosing one over the other may derive from.  There are people who may be very influential that may make actively working for your income something to avoid.  While on the other hand, some may feel that passive income takes too long to build the wealth and goals that they are seeking currently.

Then there are people like me!  Where we understand that to create something passively may take some time and active income will cover your expenses and other needs.  That you don’t have to settle for active work that you don’t like to do.  Put yourself in a position to enjoy your active work, invest the extra income on assets, and invest the extra time into building something that will become passive.  Below I want to give my opinion on both areas and how you could possibly view them going forward.

Active Income

Active income is generated when you are giving your time to earn revenue.  This could take place in forms of working your 9-5, a side gig like delivering groceries, and self-employed contractor such as a plumber.  The only way that you get paid is by actively accomplishing a task.  You don’t make the time to complete a given task, then you don’t get paid.

For most, active income may be generated from their day or night job and some of us don’t like these at all.  We may be working at the particular job because it was available or just simply hired us at the time.  So the idea of active income is something to avoid could derive from this state of thinking.  No problem, most of us may start off like this.

It is when you start to realize that I can enjoy my active work is when it will make more since.  A phrase I like to use is “You eat what you hunt!” So ask yourself often, “What am I hunting?”  Are you waking up every day to a position that you hate?  Doesn’t sound like hunting to me and may be more along the lines of being fed.  Yes you are working and actively earning income but do you enjoy it?

This should lead you into the mindset that if you are going to actively work for the time being, choose a task or position that may motivate yourself to achieve more and possibly a higher income.  Active income, when used right, can pay for our life expenses, provide a safe home for our families, and invest in passive income amongst other things.  It allows us time grow our passive income and take care of ourselves.  Imagine trying to pay your bills, feed your family, and build a system that will generate passive income while making little to no money from it in the beginning…. You could possibly end up hating your passion as much as you hated the job.

So take your time to build your passive income while working an active income that may be more suitable for your lifestyle.

Passive Income

Passive income is generated without much work required after an initial upfront of active work and time into a business, system or project.  It could also take place in forms of investing money into an asset that can replace your active work with little to no maintenance.  The choice of preference for most people but how do you get there?

When passive income is built, it will take time… when it is bought, it will take a lot of capital.  While building this blog, I remember seeing the way that I was earning pennies every day from Chivalry Jones or how I was generating a little more from my podcast Talking With Chivalry.  My mindset was sold on the fact that I was earning while building and once the projects were further along, I could really reap the rewards from the seeds I was planting.

Late nights and early mornings may be required when it comes to building something to replace yourself from actively working.  There is no getting around that unless you win the lottery or become a viral sensation.  You are basically creating another form of yourself to work alongside of yourself.  Once I started to think like this, everything else became clearer.

While buying assets for passive income, I enjoyed seeing the small returns from my gains, interest, and dividends.  Because I knew that it would only increase the income when I increased the capital into the assets.  Now where would I get the capital to put into the assets?  My active income of course!!!  The more active income I made, the more I could build the passive streams.  I actively worked my day job, I actively wrote the blog posts, I actively recorded the podcast sessions, etc.  You may get the point I am trying to make and that is passive income comes after active income and effort from projects over time. 

With that being said, I do hope you appreciate our site, learn a great deal, and focus on building yourself for the person that you are to become.  Thank you in advance and for your time!