Definition: Income

by MSE Staff | Published 7 Nov 2021 

The Definition of Income

Income is the money you bring in, but that's not all! There are a variety of different types of income and near limitless ways to create streams of it. The number of income sources you maintain have a direct impact on your financial security and peace of mind.

The different types of income include

Earned Income: 

Income you earn from employment and includes your salary, bonuses, tips and commissions. It also refers to any income earned doing odd jobs or freelance work on the side such as babysitting or selling unused items online.

Passive Income:

Income you earn from assets such as rental properties. It also includes income earned through royalties for creative works like songs, movies and books.

Investment Income:

Income earned from investments such as dividends, interest or capital gains on your investments.

These income sources can all be classified as income and contribute to your overall financial wellbeing. However, it's important you know how each income stream is taxed so that the correct taxes are applied at the right times. Consulting with a tax planner to avoid overpaying in taxes is an excellent strategy to maximize your income.

Finances can be a huge source of stress and worry. But it doesn't have to be! There are many different types of income, and near limitless ways to create streams of money that will help you build the financial security and peace of mind you deserve. If we've piqued your interest in this subject matter, don't hesitate to book a free discovery session with Curtis Banks today. You and Curtis will work together so that you can feel confident about your future – both financially AND emotionally!