How different is passive income from active income? What are the top 5 ways to earn it?

Active Income vs. Passive Income: What's the difference between active income and passive income? Find out what the five ways to earn consistently without working hard?

These days, people don't want to rely solely on their salary. Everyone is looking for passive income for financial security. But many people don't know the difference between active and passive income.

Active income is what you earn directly through your work or business. Whereas, passive income provides a steady stream of income even after you've worked hard. The biggest advantage of passive income is that it gives you freedom.

This means your money works for you. In active income, your earnings depend on time and effort. However, this isn't the case with passive income. You can earn even while sleeping. Now the question is how to create passive income.

There are many ways to do this, but choosing the right one is crucial. Let us tell you five reliable and effective ways to start generating passive income. First, renting out property is the oldest and most reliable method of passive income. Buying and renting out a house, shop, or office space provides a fixed monthly income.

There are many stocks in the stock market that pay regular dividends. Once you invest in the right company, you can generate income every year without selling your shares. This method is ideal for those who understand risk and keep an eye on the market.

If you have good knowledge of a subject, turn it into a course or ebook. Once the content is ready, you can sell it repeatedly. Each new sale will generate additional income, without the daily grind.

Earning commissions by promoting other people's products through blogs, websites, or social media is one of the most popular methods today. By partnering with the right brands, you can generate consistent income. Build an audience by creating content and then earn income through advertising, sponsorships or memberships.