We all know the types. But what if they are stages of income after all? I am an employee, I get a salary, I worked hard for it. I got bills to pay so I pay with a non-physical wallet that gives me incentives in terms of cashback. Or pay 5 bills within this week and get $3 back. I saved some from my paycheck and place them on a savings account with low to medium return rates. I quit my job I got my leaves convertible to cash. I went to take a loan and start a small business. The ROI is good just like what I get on my entry-level job. I took the profit and branched out. My store opens up on the east side because that is where my business partner resides. He's doing good with sales so I'm getting my royalties. My friend refers a life insurance agent to me and in two months I acquired a health and a retirement plan. I entrusted my branch to a family member and decided to go back to the corporate world. I went on to apply because there is a signing bonus. My business partner decides to close the store to go to his family and migrate to a different country. I find a place nearby to stay there for a while. I have decided on a rent to own contract. I can do freelance with my side projects then I met the love of my life. We bought a car and married. With our joint account we opened a mutual funds account. We explored on actively participating in stocks or day trading. We decided on three children. We needed to hold back so we contacted the bank for a time deposit for our children's school needs. We availed an education plan as soon as I give birth to my first child. My husband gets a healthcard cash benefit for a hospital room stay even though I decided to go thru labor at home, while at the ambulance and while at my parent's house. My husband and I get monthly pension from our contributions. My children gets inheritance.
You can insert more life events that involves money decisions. Are you living this kind of life? No passive income is passive at first. Passive income becomes active again to shield your business from inflation, taxes, and unmet sales targets. How strong is your portfolio? Are you the type to apply all layers of insurance to protect your solid and liquid assets? Are you the type to not think of money once it's gone? Does it make you awake at night thinking of how you are going to get it back?