The Three Types of Income

 What are the Three Types of Income?

1. Earned Income

Earned Income essentially means the income you've earned from working a job. For most people their earned income is their 9-5. 

Most hate their 9-5 job. They make less then they feel they're worth and they feel they don't get treated right and get too little benefits.

2. Portfolio Income

Portfolio Income is another way to say you own stocks. Stocks can be an essential way that you can make income long term. If you invest correctly by the time you retire you can be all set. For reference the stock market is how warren buffet made his billons. 

3. Passive Income 

Passive Income refers to owning a business. This can be a franchise or even a business that you start. Now in reality passive income doesn't actually exist in the way you may think. It will never be the same amount. One day you can make $200 in passive income but the next maybe you'll make $2,000. Either way it is an important asset to have if you have the ability to be your own boss. 

Many people say money isn't the most important and that it doesn't make you happy. I have two things to say to that. 

If money doesn't matter as much then why does everything cost money. The only reason why money wouldn't make some happy is because they did NOT really earn it. If you grow up rich and have everything they you can only buy to buy but if you build your own wealth then what you buy tend to be the things that make you more money and make you happy because you earned the money to achieve them.