What Kind of Income Do You Have?

Income can be broadly categorized into three types, earned income, capital gains, and passive income.

Earned Income: When you work actively to generate income, for instance working for a company and receiving salary, or payment, it is active income.

Portfolio Income: Also called Capital Gains, is an income you generate by making profits selling your assets. For instance, you if sell your stocks or real estate property and earn profits, it is portfolio income. This income is crucial for wealth building.

Passive Income: If you generate income without any ongoing work, it is passive income. For instance, if you earn royalty from your book, rent from your property, or dividends from your stocks, it is passive income

I have work and passive income. I also have offline business and long term investment. My passive income derived from the rent on my one hectare coco farm I inherited from my parents. It's rented by a big time farmer.

Starmix said:

I have work and passive income. I also have offline business and long term investment. My passive income derived from the rent on my one hectare coco farm I inherited from my parents. It's rented by a big time farmer.

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I will love to have multiple passive income source because it will surely keep one's mind at rest because you are getting it without undergoing stress but offline jobs are good too especially government works as you earn even after you retire .

For me my kind of income is not really permanent for sure. First of all it's not steady and l most likely rely on my regular distribution business for packaging materials.

aovurevu said:

I will love to have multiple passive income source because it will surely keep one's mind at rest because you are getting it without undergoing stress but offline jobs are good too especially government works as you earn even after you retire .

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Yes, you are so right in your contention. We need to invest more in such a way we can save a lot and find the best possible source for a passive income, Being employed in a government office makes sense too.