Earned income refers to any money you generate through working or providing services. It can be wages, salaries, tips, commissions, or any other form of compensation.
Royalty income is earned when you license your intellectual property to another person or entity.
When it comes to multiple income streams, dividends can be a great way to secure your financial future. Dividend income is the money you receive from a company when they pay out their profits to shareholders.
Interest income is a great way to generate extra revenue, and it’s relatively easy to do. The main advantage of earning interest is that it’s passive, so you don’t have to do much work, and it’s an easy way to start earning multiple streams of income.
In essence, capital gains are profits generated from the sale of investments or assets. When you sell an investment for more than you paid for it, that’s a capital gain.