Hello friends today I will be talking about different types of income and the average man has just one source of income which makes him completely vulnerable financially but an average millionaire has up to seven sources of income.
These streams of income are not all the same because it might not be possible for just one man to carry our seven different jobs within a short time and that is the reason why we have to understand various income streams, some income streams are active while some others are passive.
This is a very common source of income that most parents clamour about and one of the reasons why they send their children to school in the first instance, the method of earned income is exchanging time for money, so working to receive a monthly, weekly or yearly payment is a method of earned income. Earned income is a very good way to start building a financial life but choosing to remain fixed to this level of income is not going to contribute to financial growth.
This is a form of investment that can also serve as a method of passive income, giving up your money for loan as you receive interest on them is a good method of income, certainly I am not talking about loaning friends but looking for banks or organizations where the money is save and can yield income from time to time.
This is another stream of income that is a little common, the creation of an art for sale or simply purchasing an item for re-sale is all tied to making profit. The purchase of an item and re-selling it is another form of income which we may choose to either make an active source or a passive form. The people who take this income transaction as a passive source of income always have a source of earned income as well, which is a good financial option.
Purchasing a property and giving it out for rent is another type of income that serves as a method of increasing financial capacity which is an added advantage and serves as a different source of income.
This is about owning part of the shares of a company, when you own a share in a company and there is an increase in a stock value it means that you as an investor will get a certain reward as dividend and that will definitely increases your income level.
