With the invention of the internet, making money is easier than ever. The reason is you can make money when you answer surveys online or get paid to read e-mails on the internet. Now isn’t it easy to make money?

There are many paid-to-surf programs, “paid to read e-mail” programs, etc on the internet but the question you have to ask yourself is do you really want to answer surveys for the rest of your life? Is this an income you can depend on when you retire?

I don’t fancy leaving my computer switched on just to earn money nor do I want to read ads in e-mails or answer hundreds of surveys in order to make a quick buck. Why settle on making money once when you can build your own monthly salary? I strive for something that lasts long-term and still generates income even when I’m having a vacation: websites that generate monthly income, properties that give monthly rental income, investments that provide attractive yields and so on.

And that boils down to my point about passive and active income…

Active income is income that is generated only when you work. For instance, if you go to work, you receive your paycheck. If you don’t, you get fired!

Passive income is income that is generated after you work. Examples of this type of income are: dividends from stocks, royalties from intellectual property, sales generated from your websites or network marketing business, etc.

A lot of people have mistaken what passive income is because it is constantly used together with get-rich-quick and getting-something-for nothing hypes. The reality is all things need effort, time and energy but the difference between passive income and active income lies in the results achieved from working. Notice that active income only generates income when you work and passive income comes infinite times after doing work ONCE. The key idea here is work smarter and to get paid for what you did instead of what you do.

If you want to earn more, work less, and happily retire, start creating income streams that do not require your active participation. Whether you are just starting your business, or you already have one, the sooner you start thinking about how you are going to change your business model to create more passive income, the sooner you can achieve financial freedom.

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