One of the best ways to improve your personal finances is to increase your income. Today we’ll be reviewing the three types of income, including examples of what they are and their pros and cons:
- Earned Income
- Capital Gains Income
- Passive Income
Your income can be diversified, just like an investment portfolio.
The more income sources you have, the less impacted you will be if one of those income streams dries up. Similar to how when one part of your investment portfolio is struggling, other assets can pick up the slack.
Increasing your income is also a great way to improve your budget. Unlike cutting expenses, increasing your income has no limit. In theory, you can keep growing it and growing it with no end.
With that, let’s dive further into the three main types of income, starting with the most popular type of income – earned income.[Read more…] about What Are The Three Types of Income?