The Basics of Income and Earner : Active and Passive

Types of Income and Earner

• There are two types of income: The Active Income and the Passive Income.
• Likewise, there are two types of earner: The Active Earner and the Passive Earner

So, what is Active Income?

• Active Income is earned from ACTIVITY performed.
• Income earned is proportional to the time spent.
• Typically, we work for over 40 hours per week for more than 40 years.
• Retirement comes after over 20 years of working

So, who is an Active Earner?

Active Earners earn their income directly from the activities they performed such as rendering or offering of products or services.

Who among the money-makers belong to Active Income and Active Earner types? 

Those in the Groups 1 and 2 Money-Makers:

• SWP – Salaried/Waged People
• SMEP – Small or Medium Entrepreneur or Proprietor

Active Earners work for money.

Groups 1 and 2 are where 90% of the people earn 10% of the wealth.

And, what is Passive Income?

• Passive Income is earned from development or acquisition of income-generating Investments or Assets.
• Income earned is on-going and independent of time.
• Retirement comes as a natural consequence of on-going passive income not time.

Who is a Passive Earner? 

Passive Earners earn their income from the assets or investments they acquired or developed and/or on-going passive income they built.

Who among the money-makers belong to Passive Income and Passive Earner types?

Those in the Groups 3 and 4 Money-Makers:

• BTI – Big Time Industrialist
• CI – Capitalist and Investor

Passive Earners’ money works for them.

Groups 3 and 4 are where 10% of the people earn 90% of the wealth.