THREE INCOME CATEGORY

There are 3 income categories:
1. Active Income - commonly known as salary. Other explanation is it there is activities, there is income. Example, Employee, One-man-operation business -doctor, insurance agent.

2. Portfolio Income - This income from investments like stocks, bond, funds, gold investment. Earning requires research, buy/sell, monitoring.

3. Passive Income - This is the best of all three. Why? Because this income is termed as passive as you are not required to do much and money keeps flowing in. Possible? ... Of course possible. Example, Renting out flat, all you need to do collect your rent monthly. What else are you required to do ... basically nothing.

Majority people are under active income category. But to obtain financial freedom passive category is where you should be in.