Friday, September 9, 2016

Active Income Example Slide



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.



The essential characteristics, as well as disadvantages of active income, are:

  1. Requires the direct involvement of the individual concerned.
  2. Invariably consumes more than a than one-third of the highly valuable maximum available time resource – 24 hours of a day.
  3. In case of death or disability of the individual active income stops.
  4. Most importantly it is not available to a person in the old age when one cannot actively work anymore.


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