When we enter adulthood, our lifestyle changes a lot. Our responsibility became heavier and our needs are more profound. And we’ve always thought of, what can we do to earn more cash and to have more income?
Of course, the first thing that will come up in our mind is to start a small business. But before taking a huge leap on the question, “what ways can we do to earn cash?”, we must first know the types of income that we can acquire.
First is the earned income. The obvious types include wages, salaries, bonuses, commissions, tips and net earnings from self-employment.
This is the most common income that we receive, so for sure, you guys are all familiar with this.
Interest income is the amount of interest that has been earned during a specific period of time. It can be compared to the investments balance to estimate the return on investment that a business is generating.
But take note that this income may take some time to grow especially if you choose to put your money into the stock market.
Dividend income refers to any distribution of company earnings to shareholders from stocks or mutual funds you own.
This earning comes if you’re a co-owner of a business, once your business is settled and is gaining more money, it’s the time when you can check if your dividend income will increase or decrease.
The amount of money collected by a landlord from a tenant or group of tenants for using a particular space.
If you have a rental space, the money that you’re earning is called, rental income. This is a good income since it will be earned monthly and surely. This business may cost you a lot in the start but it will definitely double your money.
Capital gains is a profit from the sale of property or an investment. It is a rise in the value of a capital asset that gives it a higher worth than the purchase price.
A good example of this is selling a real estate, as time goes by its value can increase twice or triple depending on its location and condition. It’s an investment that can gain you money if handled well.