What's Our Income, Passive or Active ??
Most of our income is from salary. Apart from salary, we get paid for investing in RDs, FDs, mutual funds, shares and house rentals. So, what's our income, is it passive income or active income or both?
The word "Passive" means 'without an active participation' or 'without an active presence'. Passive income gets created when no active participation or presence in the work or duty.
The income from monetizing YouTube videos, monetizing the blogs, rentals from real estate buildings or flats, affiliation marketing, selling ready-made products, course design (Tutorials), shares, ICO (INITIAL COIN OFFERING), mutual funds, FDs (Fixed Deposits), RDs (Recursion Deposits), investing in private limited organizations, peer-to-peer lending, life insurances etc passive incomes and taxable.
The word "Active" means 'with an active response' or 'with an active participation' or 'with an active presence'. Active income is from our hard work, the amount of time spent in working. It is for our presence which is opposite to the passive income.
The income gets generated by spending most of our time and effort in providing the service to the organization we serve. If we invest in an organization, it is passive income. But if we take part in operations, then it is active income.
In a nutshell, if we take part, it is active income else, passive income.