💼Earned income is the most common type and requires continued work.
💰Profit income can be active or passive and involves selling products or services.
💸Interest income is passive and earned from lending money.
🎬Dividend income comes from owning stocks and receiving a portion of company profits.
🏢Rental income can be earned from real estate, equipment, or other assets.
What is earned income?
—Earned income is the most common type and requires actively exchanging time for money.
What is profit income?
—Profit income involves selling products or services for a profit and can be active or passive.
How is interest income earned?
—Interest income is earned by lending money to the government, companies, or through time deposits.
What is dividend income?
—Dividend income comes from owning stocks and receiving a portion of the company's profits.
What is rental income?
—Rental income is earned by renting out assets such as real estate, equipment, or vehicles.
00:00Introduction to the importance of having multiple sources of income.
01:14Explanation of earned income, the most common type that requires active work.
01:50Overview of profit income, which can be active or passive depending on the business.
02:47Explanation of interest income, earned from lending money to the government or companies.
03:32Introduction to dividend income, received from owning stocks and sharing in company profits.
04:19Description of rental income, earned from renting out real estate, equipment, or other assets.
05:14Brief explanation of royalty income, earned from intellectual properties like books or music.
05:47Overview of capital gains income, earned from selling assets at a higher price.
