The 7 Types of Income
-Earned Income
This is when you do a job and you get paid for it eg. a doctor or a cleaner.
This is the starting point for the majority of the world. On the other hand,
most people get stuck in this category; which is really bad. This is
because if this is their only source of income, they can be financially
dependant on their job which makes them unstable (moneywise). In
addition, Earned Income takes up all of your time, which means you will
have no time left for yourself, your family or to expand your other sources
of Income.
-Profit Income
This is when you make profit by selling/making products/services at a
higher price than it is to make/ buy them.
Depending on your business, this income can be Active or Passive.
Active Business Passive Business
-When you make the products -When you create the design of a
yourself (eg. Artwork, Pottery, product and you have a
Any specific product) manufacturer produce it for you
OR OR
-When you buy the products and -You create a digital product and
sell them for a higher price then sell it (this is passive income
yourself (eg. Buying stuff from as your active involvement is only
Amazon then selling it on eBay) needed at the start to make the
product)
In addition, there are two 2 Types of
Profit Income Business (High
Individual (small
scale) scale)
-When you create products -When you create a business and
yourself or buy products then sell other people create products for
them for a higher price you (which creates time for you
to advertise your business or
-Great way to add another source expand other
to your income sources of income)
Another way is by using digital
-Taxed quite products since they don’t require - Not taxed if it is a
heavily storage or shipping. Examples would
company
be courses, software, fonts, any
subscriptions (to apps or websites).
-Earned Income
This is when you do a job and you get paid for it eg. a doctor or a cleaner.
This is the starting point for the majority of the world. On the other hand,
most people get stuck in this category; which is really bad. This is
because if this is their only source of income, they can be financially
dependant on their job which makes them unstable (moneywise). In
addition, Earned Income takes up all of your time, which means you will
have no time left for yourself, your family or to expand your other sources
of Income.
-Profit Income
This is when you make profit by selling/making products/services at a
higher price than it is to make/ buy them.
Depending on your business, this income can be Active or Passive.
Active Business Passive Business
-When you make the products -When you create the design of a
yourself (eg. Artwork, Pottery, product and you have a
Any specific product) manufacturer produce it for you
OR OR
-When you buy the products and -You create a digital product and
sell them for a higher price then sell it (this is passive income
yourself (eg. Buying stuff from as your active involvement is only
Amazon then selling it on eBay) needed at the start to make the
product)
In addition, there are two 2 Types of
Profit Income Business (High
Individual (small
scale) scale)
-When you create products -When you create a business and
yourself or buy products then sell other people create products for
them for a higher price you (which creates time for you
to advertise your business or
-Great way to add another source expand other
to your income sources of income)
Another way is by using digital
-Taxed quite products since they don’t require - Not taxed if it is a
heavily storage or shipping. Examples would
company
be courses, software, fonts, any
subscriptions (to apps or websites).
