Earned income, also known as salary or wages, is the money received for work done for an employer.
24 Jul 2023, 13:27
Earned income, also known as salary or wages, is the money received for work done for an employer. It's subject to taxes and based on your employment agreement.
Investment income is the profit earned from investing in assets like cryptocurrencies, stocks, bonds, or real estate. It's considered passive income, requiring no day-to-day involvement.
Business income is revenue earned from operating a business or being self-employed. It comes from offering goods or services to customers and carries additional responsibilities like managing expenses and taxes.
People often combine these income sources to diversify their financial portfolio and achieve their goals. Understanding the differences is crucial for managing finances effectively.