Types of income
Training 515 minutestypes of income
You are 30, an accountant earning $2,800 a month. Every dollar you have comes from hours worked. If you stop, the money stops too.
Training goal: Add asset income to your salary
▶ Play this trainingSituation
1. You sort your income: $2,800 salary, $150 from weekend gigs and $6 of interest on savings.
- Treat it all as just "money"
- Split it: active, portfolio, passive
- Focus only on a bigger salary
2. A "passive income in 30 days" course costs $900 and promises $3,000 a month with no effort.
- Buy it, maybe it works
- Skip it, start investing $200 a month
- Buy the course in installments
3. You know small business bookkeeping. A friend suggests making a spreadsheet template and selling it online.
- Build it over 3 weekends and list it
- Take more weekend shifts instead
- Wait until there is free time
4. A year later, templates bring $60 a month and investments $25. Where does that money go?
- Spend it on cafes, it is a bonus
- Quit, there is passive income now
- Reinvest all asset income
What you will learn
- Active income needs your time, passive and portfolio income do not.
- Passive income is built from capital or work done once.
- Reinvest asset income until it covers your expenses.
Your real-life step
Work out what share of your income arrives without your hours. Write a goal for the year.
Questions and answers
What are the main types of income?
Active (salary, services), portfolio (interest, dividends, gains) and passive (rent, royalties, a business that runs without you).
What is the difference between active and passive income?
Active income stops when you stop working. Passive income keeps arriving from assets.
Is passive income taxed?
Yes, almost everywhere. Rates and rules differ by income type, so check your country’s laws.
More trainings in this module
Numbers are illustrative. A game, not financial advice.