Mini Lessons for Beginning Entrepreneurs
Active Income – What is it?
(Lesson 1 of 3)
This lesson is part of a three-part mini lesson on types of income. Make more revenue by utilizing both active and passive income! The more streams of income you have equals more money in your pocket, simple as that! Stay tuned for the last lesson which lists 10 easy ideas to get you started in bringing more money into your accounts.
If you’re already a business owners or entrepreneur, you’re already making “Active Income”, and just didn’t know it!
According to Investopedia.com, “Active income is income for which services have been performed. This includes wages, tips, salaries, commissions and income from businesses in which there is material participation.” In plain terms, any money you make by actively providing a service, or delivering a product, is active income.
It’s pretty self-explanatory. This is the easiest form of income, because it’s the one that people are most familiar with. Online shops, small local business, and even blogs like this one are included in this. Because you regularly maintain it, it is your active income. Some entrepreneurs even have multiple sources of active income.
To be successful, though, you should look to make two types of income, that will all be discuss in the upcoming mini lessons. (So stay tuned!)
- Active Income
- Passive Income
Each are equally important in their own way. As long as you are educated and attempting to accomplish each one of these, you’ll be successful in bringing in steady revenue.
So congratulations! You’ve hit the first milestone in an entrepreneur’s journey! You should feel incredibly proud.
You’re making your first stream of income, but of course the goal is that we want to make multiple right?
In the next coming articles, we’ll discuss Passive Income, and how it is one of the easiest and best ways to bring in an alternate stream of income.