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A Place for Learning and Practicing "Value Investing" Taught by Benjamin Graham and Successfully Executed by Warren Buffett.
Friday, September 9, 2016
Active Income Definition
‘Active Income’ is earnings out of labor or effort. People engage in thousands vocations and professions to earn active income. Solicitors, doctors, teachers, brokers, potters, goldsmiths are people dedicated to a few examples of vocations.
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The essential characteristics, as well as disadvantages of active income, are:
- Requires the direct involvement of the individual concerned.
- Invariably consumes more than a than one-third of the highly valuable maximum available time resource – 24 hours of a day.
- In case of death or disability of the individual active income stops.
- Most importantly it is not available to a person in the old age when one cannot actively work anymore.
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- How To Generate Passive Income?
- Low Lifestyle Costs and High Passive Income Lead to Financial Freedom
- How to Attain Financial Freedom?
- How Will My Lifestyle Affect My Children?
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