8 Types of Income you must know

 8 Types of Income you must know...Welcome to bankboi.com a place where people come to acquire banking and finance-related knowledge. Here we are going to see 8 types of income, this is an informative article that will help you to create multiple sources of income that would help you to become Financial free. You will enjoy Financial Freedom so let's begin...

8 Types of Income you must know 

1. Earned Income -

Number one is earned income. You get this type of income from your job. You are working for someone else Company and that company paying you for your work. This type of income keeps you engaged in 9 to 5 jobs.  This type of income will help you for a living but cannot be rich and enjoy Financial Freedom.

2. Profit Income -

Number two is profit income, Income from buying and selling this type of income you get from a business. If you are a business owner you know what is profit income, Profit simply means the revenue that remains after expenses. You invest money in your business and get profit from it that is profit income.

3. Passive Income -

Passive income is a source of income, in this type of income you get money without much effort for example Income from lending money, In this type of income, your money works for you. There are many sources of passive income.  In this type of Income, you get Continuous income with little effort.

4. Interest Income - 

Number Four is Interest Income, For example, If you lend money you earn interest on it, without any work. Interest paying bank accounts, you deposit money in your bank account, and the bank pays interest on it. For example fixed deposit you earn interest on FD.

5. Dividend Income -

Number five, Dividend Income, Income from owning stocks, you get this especially from share market, stock market. A dividend is a distribution of profits by a corporation to its shareholders. If you pick the right dividend-paying stocks you get a decent amount of money. If you are from India and looking for the best trading and Demat account providers upstox is the best option for you.

6. Rental Income -

Income from renting a property. Rental income comes from the property you put on rent.  For example, you are the owner of a car you put that car on rent you are on rental income from your car.  You are the owner of residential properties you put them on rent and earn rental income from your property.

7. Royalty Income -

In this type of income, you get income from others using your ideas/ intellectual work. For example, you are a singer you sang a song and the same is available in the market for the public you are royalty on it. Another example is if you are an author, you wrote a book, the book is available in the market when your people purchase that book you earn a royalty on it.

8. Active Income - 

Active Income,  active income is a source of income where you work actively and money for that. In this type of income, your presence is essential. For example, professionals if you are a doctor you get money for your work but only when you are present in your clinic.

These are 8 types of Income,  If you find this informative article useful don't forget to share it with your family and friends.

 

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