Are you wondering what types of income exist? Whether you are looking to add a stream of income to your portfolio or you want to quit your job and still have a source of income, knowing all the ways to earn and receive money is important.
When you think of income, you likely think of working at an hourly or salary job, owning a business, selling items or services, and more. While these are the most common types of income, they are not the only ones.
There are all types of income you can receive, ranging from combat pay to alimony. Knowing all the types of income you can earn is a great first step to increasing the money you receive.
If you are wondering about the types of income available, this short and simple guide is for you.
Wages
Perhaps the most common type of income you can receive is wages. This income comes from working an hourly job and getting paid per hour. Wages can also include overtime, holiday pay, commissions, and more.
Salary
Another type of income stream is salary. This income comes from working a job and being paid a pre-agreed amount. Salary income can come from owning a business or working for an employer.
Interest
An unearned type of income you can receive is interest. This income comes from owning an asset that earns money, either actively or passively. Interest can be earned on stocks, bonds, businesses, and more.
For more on unearned income, visit https://bogartwealth.com/what-is-unearned-income/.
Government Payments
One of the different types of income that is common today is government payouts. This income is given based on certain qualifications and certain situations. Examples of government payouts are unemployment insurance, disability insurance, and social security benefits.
Inheritance
A common type of income is inheritance. This income comes from receiving a certain amount of money or an asset after the owner of the money or asset has passed away. Inheritance can be a trust, cash, a home, a car, and more.
Child Support
One source of money that is considered income is child support payments. This income comes from having more than 50% custody of a child and receiving money to care for the child from their other parent.
Legal Payouts
One of the different kinds of income you can receive is legal payouts. This income comes from settlements, awards, and court-ordered payments. This can involve personal injury settlements, lost pay, business damages, punitive damages, and more.
These Are the Types of Income You Need To Know
By knowing the types of income that exist, you can use one or more of them to boost your yearly earnings.
The most common types of income are wages and salary. Other income sources include interest, government payments, and inheritance. Other common incomes are child support and legal payouts.
These are the types of incomes you need to know about.
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