8 types of income streams

In this article, we are going to read about the 8 types of income streams you should know about.

Earned Income

Earned Income is the most common form of income source. It is the wealth we gain in exchange for our effort and time, like our remuneration or salary from our jobs.

Profit Income

Profit Income is basically how business works. You sell products for a higher rate than they originally cost you.

Interest Income

Interest Income is the money that you earn by loaning your wealth and charging interest or it could be from a time deposit or savings account.

Residual Income

Residual Income is a kind of passive income. In this type of income, a product you have created continues to produce money for you.

Rental Income

Rental Income is the money you earn by renting out a property or asset. The term is pretty self-explanatory.

Royalty Income

Royalty Income is about making money from utilizing a product, idea, or concept that you own. You don’t need to do the exhausting business to earn the wealth.

Dividend Income

In this case, you are a shareholder of a company and simultaneously earn from the wealth you have invested in the company.

Capital Gains

It is a lot like business, the dissimilarity is just that you are flipping precious assets like your car or website, instead of a low-price product.