Different Types of Income [Three Common Ones To Master]

Just like it’s important to diversify your investments, it’s important to diversify income streams.

Why Different Types of Income Matter

1. Earned Income

Advantage:

Three Common  Types of Income

It’s relatively easy to get started with

You will need to exchange your time for money

Disadvantage:

2. Passive Income

You are no longer exchanging time for money.

You will need to put in a lot of upfront work to create this.

Advantage:

Disadvantage:

It won’t require so much work

This kind of income does require some knowledge

3. Capital  Gains Income

Advantage:

Disadvantage:

You will receive a recurring income every month

It requires a significant amount of upfront investment.

Rental Income

Advantage:

Disadvantage:

Other Types of Income

Reasons to Start Saving Money Now

Inherited Income

The obvious advantages are you potentially are getting a ton of cash and assets for doing little to no work.

The best thing you can do is master the different types of income and find ways to increase your income streams beyond just your job.

Final Thoughts

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