Active income is money from labor (physical or professional services, like a doctor, lawyer, consultant, etc.)
Passive income (similar to residual income) is money from investments or businesses set up one time to a stream of income.
Example of active income is working and getting paid weekly or bi-weekly. Stop working and the income stops. In most cases work harder or increasing your hours will increase your active income.
Example of passive income is buying a real estate property with a mortgage of $100/mo and renting it out for $200 a month. You would use the $200 to pay for the mortgage and keep the left over $100 as profit. (Do that scenario one hundred times and you’ll make $10000/mo every single month whether you’re working or not).
Of course, passive income is not that easy to formulate nor is it easy to find. I just made it seem simple for the sake of the example…it takes a lot of hard work to find and build passive income.
Good luck!