7 Different Streams of Income

7 Different Streams of Income

 

Good afternoon this is Lucky Penny. It’s a Beautiful day & I’m excited to change the world.

Question, How many streams of income do you know about? Where you even aware you could earn income other that getting a job? What if this is what we teach others? I’m going to tell you all 7 ways to earn money. Maybe you can start learning each one & have 7 types of income so you can have your time freedom with your financial freedom.

Earned Income: 

  • Earned income is any income from a job or self-employment.
  • Income from investments and government benefits is not considered earned income.
  • Taxpayers with low incomes may be eligible for an Earned Income Tax Credit.
  • This is where you earn money by trading your time or by doing something.
  • A great Example of this would be a Job trading your time for money & usually Just Over Broke!
  • There is nothing wrong with working a job, I have personally worked job’s since I was 14 years old & have learned a ton.

 

Profit Income: 

  • Profit simply means the revenue that remains after expenses; it exists on several levels, depending on what types of costs are deducted from revenue.
  • Net income, also known as net profit, is a single number, representing a specific type of profit.
  • Net income is the renowned bottom line on a financial statement.
  • Money you earn by selling something that cost you less to make.
  • This would be a for profit company such as Walmart or The Hershey Company.
  • Some of these companies are online such as ecommerce, Facebook or Amazon.

Interest Income: 

  • Net interest income is a financial performance measure that reflects the difference between the revenue generated from a bank’s interest-bearing assets and expenses associated with paying on its interest-bearing liabilities.
  • Lending your money to someone else
  • Example: Placing your money in the Bank or letting the government borrow it.

Rental Income: 

  • The amount of money collected by a landlord from a tenant or group of tenants for using a particular space.
  • Money you get for renting out something you own.
  • Example: House, Boat, Car, or a building with other companies that could be leasing property from you.

Capital Gains:  Capital gain is a rise in the value of a capital asset(investment or real estate) that gives it a higher worth than the purchase price.

  • When you earn money because what you own goes up in value.
  • Example: Your home goes to $300k from 200K when you bought it & when you sell that home you have $100K in Capital gains from that particular asset.

Royalty Income: 

  • A royalty is an amount paid by a third party to an owner of a product or patent for the use of that product or patent.
  • The terms of royalty payments are laid out in a license agreement.
  • The royalty rate or the amount of the royalty is typically a percentage based on factors such as exclusivity of rights, technology, and the available alternatives.
  • Money you make for your ideas, systems, or your products.
  • Example: A Song Writer will be paid a certain percentage of royalties every time that song plays on the radio. Or you build a C Corporation business & make it public.

 

This is information we should be taught in schools. The lack of this information has placed our beautiful world at risk, luckily know we have it. So you can show all the people you love & give financial & time freedom. It is possible. Think of money as a tool you can earn all over the world according to Bob Proctor.

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