What is the difference between active and passive income? I'm sure you've heard by now all of these
people talking about passive income and how to make money while you sleep and from the beach
and all these other things. Well, it's actually true if you know the difference between the 2.
I'm going to tell you exactly how you can know and how you can get both type of incomes for yourself.
Let's go.
So, let's first talk about active income because this is what most people already probably already
have without ever even knowing it. Active income is income that you earn. Things that you are doing
actively to earn income. For example, a job. A job is considered active income because
if you stop working and you no longer go to that job, that income will stop.
Active income is income that is acquired by you generating income. By you doing an activity that
gets you income in each month. Similar to a job, whether it be self-employed or working for others.
Anything that you do on a weekly monthly or daily basis in order to generate income
is considered active income. If you actually have to do something in order for the money to
come then that is considered active income and that is what most people have. Passive income
is a little bit different and that's what most people are going for. Let's talk about that.
Passive income is income that you do not have to do anything in order to receive. For example,
passive income could be social security income that you receive from being retired. It could be
a pension or it can be rental income or royalties. Money that you've already earned that is expected
to overcome over and over regardless of what you do each day. Passive income is absolutely
awesome. And most people that retire want passive income in order to retire. Because in our society,
it seems like we work each day and then we work for a certain amount of years and then we retire,
most people put passive income in the category of retirement. Most people do not think that
they can receive passive income while they are still working and receiving active income.
But that is absolutely incorrect and probably the biggest mistake that most people make. You
can start creating streams of passive income while you are still working. Whether it be for yourself
or for another person. Passive income is a goal that all of us should have because passive income
is what is going to allow you to be free and have money coming in regardless as to whether
you work or not. So, let's get into how you get passive income. So, as many of you guys know,
I started off investing in real estate as a loser. Yes, today I'm a real estate millionaire, mentor,
and mom of 5. But when I first started investing in real estate, I was a complete disaster.
I started in 2002-2003 while working a job and flipping houses on the side.
I thought I knew what I was doing until 2007-2008 hit and we ended up losing everything. By 2009,
I was back in my parents' basement. I was bankrupt with multiple foreclosures and terrible credit.
I was a disaster. I had no idea about how to create passive income and that is truly why
I ended back up in my parents' basement. I was working a full-time job and I was flipping houses
which is also an active strategy. If all of your income that you need to survive and make money
often to live off is all active income, you're probably not setting yourself up for success.
I quickly realized that when I lost my job and wasn't able to pay for the flips that I was doing,
I didn't have any other income coming in. I did not have multiple streams of income and I hadn't
even thought about creating multiple streams of income. So, passive income has become so important
and the main reason as to why I consider myself a success today. No matter if to whether I work
each day or if I don't work each day, I have royalty income and rental income that is
passive and is going to come in regardless year after year with little to no effort from me.
That is truly what you want. So, like I said, I started from my parents' basement. I was
wholesaling when I first started. And then I moved to fixing and flipping. And then I got
enough rental properties and I was able to quit my job. So, it was truly passive income that
was allowed me to quit my job which was active income. I now had enough money coming in from
my rental properties where I was able to replace a 6-figure job. In fact, the last job I worked,
my base salary was actually over $200,000. But it wasn't easy to replace that income with passive
income. I had to be very deliberate and make a true decision that that's what I wanted to do.
Let me tell you how you can do it too. So, the true key to success and how you can really become
a millionaire, a certified millionaire is through both strategies. You really want to have both
passive and active income. But do not ignore either one. Passive income is awesome because
like I said, no matter as to whether I do anything or not, I have money that's going to come in for
my rental properties and royalty income that's going to come in from my books, my podcast,
and other products and services that I've created. But I still go after active income. There's still
things that I do each day. Such as making YouTube videos or making content or writing more books or
coaching and mentoring or getting more properties. In other words, the reason why I am successful is
because I have both passive and active income. But why I own my time and why I feel free is through
the passive income. Because at any point in time, if I decide I no longer want to write books,
I no longer want to make videos, I no longer want to hold events and go on speaking tours;
I have passive income that will come in from things that I've already created and things that
I own. So, let's take a quick step back. You want to start off with active strategies. Like I said,
when I was in my parents' basement, I had to start wholesaling and fixing and flipping before I was
ever able to get to the passive income. Don't just think that you should go after passive income. It
usually starts with your active income and the strategies that you use to actively make money.
Once you've mastered those, then you can create other businesses and other streams of revenue that
will bring you in passive income each month. Like I said, I started with the rental properties. Now,
I have books on real estate, a podcast on real estate, a YouTube channel on real estate. I coach
a mentor in real estate. I have affiliate income. I really could go on and on and on about all of
the different streams of revenue that I now have. But again, it all starts with your core business,
your active income. So, there you have it. Please make sure you like this video. Please subscribe
to my channel. Make sure you click that little notification bell so you don't miss any of this
content that I am bringing to you every single weekday. I make sure i tell you everything and I
don't hold anything back. I want to make sure that you have all of the resources, all of the tools,
and all of the knowledge that you need to be successful. This is Noelle. To your success.