Difference Between Passive and Active Income

In every job, the most important thing is to have more money incoming than going out. You can sort the incoming money into two categories: active income and passive income. You need to know the difference between active and passive income and the meaning of this difference for your earnings. If you are not sure that you can do it all by yourself, and you need help, Trustpedia is surely a trustworthy choice. It is always a better option to let the professionals do the job you are not sure you can. Although you are probably familiar with terms of active and passive income, in this text, you will learn more about them.

Passive income

The most notable characteristic of passive income is that you don’t need to be present all the time. Your money is working for you, and this means that you are investing your money and time into something, and there is no need to do it continually. Your physical presence is not necessary, so you can go on vacation while your money is still incoming. But, you should know that passive income sometimes takes years to achieve.

There are many examples of passive income, and you can find the most often in this text:

1. Earning interest on investments

The original form of passive income is earning interests of investments. If you have enough money to invest in your retirement account, you will have money to live your life without stress. It is good to be disciplined and to invest consistently throughout your life, so when you come to retirement, you don’t need to think about money.

2. Info products and online course sales

If you want to make money in this way, you need to have good marketing skills. Building a massive online audience can take years, but this is a crucial thing to do. If you successfully do this, you can sell everything you want, and useful courses are maybe the best way to make income regular.

3. Affiliate income

Affiliate income represents money that you get through clicks on your blog. It is extremely popular today since there are so many opportunities for this. You only need a great imagination and a big online community, and you can make a lot of money. The other way is to make a specially coded link with affiliate commissions for products or services on your website. With every click, you get more money.

4. Display advertising

New times demand new marketing forms. Building a blog or website with a large amount of monthly traffic can take a long time, but if you are a proud owner of one, you can make a lot of money. If your blog or website is very successful with many previews during the month, you can offer space for display advertising. You put a commercial on your website, and that’s all.

5. Rental

Having a property for rental is always a reliable way to make money. The only problem is to find a trusty tenant, and everything else is easy. You can go wherever you want, and you’ll get your money monthly.

Active income

Active income represents payment for your work. We can say active because you need to be active to get your money. It doesn’t need to be classical office work, but the crucial thing is that income you make is get by working. This type of income requires your time and effort, and it can be a good starting point for passive income. It is maybe the most common way of earning money.

There are some of the examples of active income to explain better:

1. Salary

Maybe the most typical example of active income is salary. That means that you have a working time, and you get paid for that. The most often payments are every month, and you get a list of your days off at the beginning of the month.

2. Hourly wage

Hourly wage is a great way to earn your money. You can start as a teenager delivering the newspaper, and also work this way as an adult. That means that you get paid for every hour you work. The great thing is that you can work overtime and get paid for that.

3. Tips

It maybe doesn’t look like that, but every tip you get is an active income. It may be the extra money you get for your service in the coffee shop you work in, or for any other service you do for someone. That is not your primary way to make money for life, but it is an active income.

4. Freelancing and consulting

If you are great in some field, no matter online marketing, finance, or anything else, you can offer your services in exchange for money. Consulting firms are expanding, and this is a great way to earn money today. The other modern way is freelancing. You can do many jobs from your home, and this is a great way to make money and be free to work wherever you want. That also represents an active income because, in both forms, you need to put effort and time to get money.

5. Commissions

We usually mention commissions when talking about sales. That can be a great way to earn your money if you are an excellent sales agent. In this case, the more you sell, the more commission you get, and that means more money.

Although the difference between active and passive income is clear, they are very connected, and both of them are very important. Regarding this, you can see that there is no active without passive income. The question of what is better doesn’t make any sense here. Of course, it is much easier collecting the passive income while you are on vacation, but the main thing is that you need active income for that. The important thing is to know the difference between those, so anything you do can assure your money income. Be careful with your money, and always think twice before you invest in something.

What Are The Best Investment Opportunities in China?


China’s shift from a low-income agrarian economy to a market-based system in 1978 reshaped the country as a whole. The once low-income economy was a threat to China so changes had to be made to be competitive both in the domestic and foreign markets. That was made possible after a series of measures that transformed the country roughly five years ago.

The statistics behind China’s economic rise speak for themselves. According to statistics from the World Bank, nearly 800 million Chinese citizens have escaped poverty in the last four decades, and China is the world’s largest exporter of manufactured goods. According to Forbes, China has nine of the biggest firms from the list of the top 20 in the world.

With so much potential for business and investment, China is a really great place to stake your claims, even if you are a foreigner.

So with all that said, let’s find out the best investment opportunities in China.

The Stock Market

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The Chinese stock market has had a very rough year, the roughest since 2008. The Shanghai Composite is down by 25% and the Shenzen exchange sees a 33% decline in its benchmark index. According to Gentlemen Marketing Agency, a country’s stock market is often the barometer for the nation’s economic strength and wealth.

So, the Chinese stock market is in a pretty bad state, but does it mean you should stay away from it? The answer to this question is no. The stock market is in a crash due to the US-China stock war that is currently going on. But every investor will happily say that if the market is in decline, then the stock prices are also in decline. If the stock prices are in decline, then there is a real opportunity to invest in Chinese stocks.

The Chinese Yuan

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The Chinese are slowly, but with somewhat poor success, trying to make the yuan a global currency. Since December 2017, only 1.7% of both domestic and foreign payments were made denominated in yuan. The numbers show us a low volume, but the future could see those numbers rise. While the trade is not very high, the currency does display positive signs that the volatility in the forex market will increase.

Gold Investments

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Gold has been a much-favored investment tool in China for almost millennia. The reasons behind it? Gold investments have the potential of stabilizing your investment portfolio and even provide you with an extremely high return of investment during difficult times of the world economy. When the global crisis occurred in 2008, the price for gold was $1,000 an ounce. Everyone started turning towards the shiny material and the price quickly rose to $2,031 per ounce in 2011. That was a 100% increase in the following three years. The next seven years showed us a different picture. The price of gold during the next seven years was in constant decline and at the beginning of 2018, it hit a price of $1,280 per ounce.

However, it’s 2019 and reputable banks such as JP Morgan and the Bank of America think that the price of gold could increase by 15% in the following few years.