Active Income vs Passive Income

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Imagine you joined an organization as employee and you worked first month for whole 9 hours. Boss calls you after you get paycheck and tells you that you have to work for only 8 hours and 45 minutes because of the effort you put in for the first month. And imagine this happens every month. Wouldn't it be great? After few years you just have to work for 1 hour a day and then once in two days and once in a week and once in a month and eventually our ultimate goal of FIRE.

By the above story, I just want to tell you that effort you put in during the first month, entirely comes under active income. And from the second month you are getting same amount money, but time you put in is less (15 minutes). Hence, that 8 hours 45 minutes of work is active income and remaining is passive income. 
Your energy will not be same in overall lifespan. It will peak out in 35 and gradually decreases. Same will go with our earned income (active income) as well.
Except the CEO's of some MNC, nobody ever made a fortune by working 9 to 5. I have differentiated incomes more here.

100 rupees earned by passive income is much greater than 1000 rupees earned by job. This concept maybe new but it's true. Reason is that even if you are unhealthy, even if you are not willing to show up to work, even if you have emergency to attend that 100 rupees will show up every month. And also don't forget the income tax that you need to pay on active income. I have explained how much you need to earn before every 100 rupees. For Passive income, taxes will always be less when compared to Active income

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