3 Types of Income

There are basically 3 categories of income: Active, Passive and Portfolio Income. Most of us have an active income which is our job. However, having an active income only is insufficient to make us rich (at least for most of us). We need to have passive and portfolio income. Passive income could be income earned through property rental or internet-marketing where you do not need to be actively involved. Portfolio Income could be profits earned through investments and interests from bank savings.