Difference between passive income, extra income and active income

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Active income and extra income are those that are linked to a productive activity. For example, if you are a salaried worker or a self-employed professional, your main active income comes from the remuneration of your activity.

However, it may be that you have a second occupation, either to supplement your monthly budget or even as a hobby. For example, in the period of delivery of the Income Tax return, some people do this work for friends or family and get paid for it. Or on festive dates that move the trade more, it is common to hire temporary professionals on weekends or at different times in stores.

Regardless of the situation, the remuneration obtained from this secondary activity will be extra income. That is, extra income is also active income, as it only exists when there is work performed by the person receiving it.

Passive income, on the other hand, is one that does not depend on any direct action by you for it to exist.

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