Active and Passive

The difference between active income and passive income is somewhat like the difference between planting vegetables and planting fruit trees.

With vegetables, you get to prepare the land, sow, fertilize, water, harvest and sell them within weeks, but you have keep doing it or your income stops. That’s active income.

With fruit trees, you prepare the land, sow, fertilize, water, but you have to wait 3 years before it starts to bear fruit and you can harvest and sell it.

What’s the difference then?

Well, for me, the difference is you need only to do it right once! After the fruit trees bear fruit, you just have do a little maintenance (like watering and adding fertilizer) and you get all the fruits you want! This is passive income.

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