FITNESS INSPIRATION – DYLAN E

There are three main types of income streams: active income, passive income, and portfolio income. Each type of income stream has its own unique characteristics and ways to generate them.

• Active income: Active income is earned by actively providing a service or product. This includes salaries, wages, and commissions earned through traditional employment. To generate active income, you must actively work and provide a service or product. This can be achieved through traditional employment, self-employment, or freelance work.
• Passive income: Passive income is earned without active involvement. This includes rental income, royalties, and income generated from investments such as stocks, bonds, and real estate. To generate passive income, you must invest time, money, and effort upfront to establish income streams that can generate income without much additional work. Examples include rental properties, dividend-paying stocks, and royalties from books, music, or other creative works.
• Portfolio income: Portfolio income is earned from investments in the stock market, bonds, mutual funds, and other financial instruments. This type of income is generated from capital gains, dividends, and interest. To generate portfolio income, you must invest in financial instruments that can generate returns. Examples include investing in stocks, bonds, mutual funds, or real estate investment trusts.

In conclusion, each type of income stream has its own unique characteristics and ways to generate them. Active income requires actively working and providing a service or product, passive income requires upfront investment and effort to establish income streams that can generate income without much additional work, and portfolio income requires investing in financial instruments that can generate returns. By understanding the different types of income streams and how to generate them, you can create a well-rounded and diversified income portfolio.

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