What is linear income?
Linear income also called active income is money you earn for your effort. In order words linear income is money you earn when you show up at work. Almost all employed or self-employed persons earn linear income. Employees of government, doctors, lawyers, artisans, teacher, franchise owners, etc., earn linear income. If they do not got to work or attend to their clients, they are not paid.
The benefit of earning money this way is that you earn money every month as long as you show up for work.
What is passive income?
Passive income is an income you receive on a regular basis, with little effort required to maintain it. Passive income, also known as residual income, is a stream of income that you can earn many times.
Here are several sources of passive income:
Royalty income: For example, singers are paid royalties every time their songs plays on radio or on television, regardless of how long ago they sang it? This is a form of royalty income.
Dividends: Are money paid out by a corporation to its shareholder members. You earn money because you are an owner of the company.
Rental income: You can also earn income when you invest in a property that you rented out to people.
Interest income: These are income you earn as Interests from savings and fixed deposits.
Website income: You can earn money from owning a business on the web. Properly done a website will continue to earn you money regardless of the time of the day. Your clients can buy your products and services online at any time because the whole transaction is automatic.
Network Marketing and Multilevel marketing: You can earn money from being an active member of one or many multilevel network marketing groups. Money is generated regardless of the time of the day. Your clients and network partners buy and service online which generates income for you.
Which is better linear Income or Passive Income?
So, would you rather earn linear income or passive income? You decide!
As for me, I would rather earn passive income
It’s important to live and enjoy our very short and temporary time we have here on this precious Earth. There is nothing worse than working so hard 5 long days per/week for a long period of time, and in the end you don’t have the income needed once your hard working years is over.