4 Different Types of Income

In order to really understand money, you must first understand the different types of income. And by really understanding these different types of income, you can make a better decision concerning the way in which you want to Make Your Money. Below are the 4 basic types of income. There is no right or wrong, it's all about preference. It's your choice! As you review them, you will be naturally drawn toward the type(s) the appeal to YOU.

1.) Earned Income: (also referred to as linear income) This is where there is a direct correlation between your time and income - They are directly connected. In other words, you're trading your time for dollars -- You work 8 hours, you get paid for 8 hours... You don't work - You don't get paid! Examples: A Job or income endeavor requiring your time & involvement such as Paid Focus Groups. Or any business (usually service businesses) in which You-Must-Be-There in order for it to operate.

2.) Residual Income: This is income that you gain by doing something correctly once, and then reaping the financial profits over and over again without any further effort on your part. Examples: royalties, a percentage of a previously sold product that has a re-occurring income i.e., insurance, a mthly membership product/service, real estate property returning rental income, and weekly or monthly subscriptions. Also being involved in legitimate network marketing program is a proven method that many have used to build a solid residual income.

3.) Leveraged Income: Income that you gain in conjunction with the combined efforts of others. Examples: A team, sub-affiliates in your affiliate programs, downline income, or your employees if you own a business and employ others to generate income towards your bottom line. [ Picture this... You - multiplied over and over again -- And each one of you is making YOU more money. That's the Power of leveraged income ...it's greater than you alone ...it multiplies your efforts!]

J Paul Getty said it best, "I will rather earn from 1% of 100 peoples effort than from 100% of my own effort".

4.) Passive Income: Any type of income that doesn't require your time (or verrry little of it) in order to sustain. Examples: Investments, High interest bearing accounts, search engine optimization, viral marketing, legitimate network marketing, product developed and sold through automated system, your own affiliate program managed by a third party such as ClickBank, Share-A-Sale, or other. ...(residual income also falls in this category. Passive & Residual Income is oftentimes used interchangeably).

Now that you have a better understanding about the different types of income - Go ahead and Make Your Money!!