Personal Income — theory, chart and quizzes | Econolik
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Topic 13 · finance

Personal Income

Income is the money a person receives; what matters is not only how much, but also where from and how stable it is.

Active income

Active income is pay for your labour and time: a salary, a fee, a side job. Stop working — the income stops.

Passive income

Passive income comes in without constant effort: interest on a deposit, rent, dividends. It needs starting capital or an asset built in advance.

Diversification

Several sources of income are safer than one: if one is lost, the others hold. So it is worth combining incomes.

🎯 Now possible

Cheat sheet

Active income = trading time for money
Passive income = money works on its own
Passive needs capital or an asset
Several sources are safer than one

Practice on this topic

← Fiscal Policy Personal Spending and Credit →

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