In Chapter 3 of our book, Anti Suit Entrepreneur, we discuss the three types of income that we have actually seen work in the REAL world. Here is a general overview of our discussion:
Active income is any income that you actively work toward. If you're not working, you're not making any money. Hourly wage jobs, salaried jobs, self employed people (consultants, doctors, lawyers, etc), business owners, contract work, real estate flipping, and day trading would examples of active income.
Recurring income is income that takes effort to get setup and will continue to come in with reduced effort on your part and allow you flexibility in your schedule. Recurring income examples are: rental property, subscription services, consumable products, business owners, websites that sell products, and the list goes on and on.
Many books and people call this type of income residual income and tout how it lasts forever once you've established it. That's simply not the truth. We call it recurring income to be more accurate and differentiate it from residual income. Recurring income can come in while you're doing nothing or minimal work, but it won't last forever. It takes effort to keep it coming in.
Passive income takes the least amount of effort and gives you the most flexibility in your schedule. Examples of passive income are: interest income, dividend income, pension income, social security income.
Passive income is what everyone wants, but it is the hardest to get. Once you get in the position to make passive income, it takes the least amount of effort to maintain.
Everything is changing - the economy, the job market, the country, and the world. The traditional or old way of doing things is not going to cut it for being successful in the new economy, let alone surviving.
Let's be real for a minute... you know there are some major issues going on right now all over the globe. End of the day, it has an impact on you and your family in direct and indirect ways. Like it or not, the world is getting smaller and smaller.
Download our eBook, "How To Survive and Thrive in the 21st Century with the Internet Revolution" written by Chris Lopez and Jason Wells, Authors of the Book, Anti Suit Entrepreneur.