Three different kind of income

There are three diffdiffe kind of income:

1. Ordinary earned income: is generally derived from a job or some form of labor. In its most common form, it is income from a paycheck. It is also the highest-taxed income, so it is the hardest income with which to build wealth. When you say to a child, "Get a good job," you are advising the child to work for ordinary earned income.

2. Portfolio income: is generally derived from paper assets such as stocks, bonds, and mutual funds. Portfolio income is by far the most popular form of invesinves income, simply becabec paper assets are easier to manage and maintain.

3. Passive income: is gegeneral derived from real estate. It can also be derderi from royalties from patents or liclice agreement. Yet approximately 80 percent of the time, passive income is from real estate. There are many tax advantages available for real estate.