Active income is the money you earn as a direct result of the work you put in. This is most common form of income, and frequently earned by “trading time for money.”
In fact, for most people, active income from a job is their only income.
That’s a risky position to be in.
Active income examples:
- Your day job is active income.
- Freelancing is active income.
- Coaching and consulting is active income.
No matter how you have it structured, whether you’re hourly or on salary, whether you’ve “productized” your service or not, you’re still trading hours for dollars. (Unless you have a team in place behind you to deliver the work.)