5 TYPES OF INCOME YOU SHOULD KNOW Income is an essential aspect of our lives, and it is important to understand the different types of income. Here are five types of income that you should know: 1. Earned Income: This is the most common type of income, and it is the money you earn from working. It includes salaries, wages, and tips. 2. Passive Income: This type of income is earned without actively working for it. Examples include rental income, dividends, and interest from investments. 3. Portfolio Income: This type of income is earned from selling investments such as stocks, bonds, and mutual funds. It is also known as capital gains income. 4. Capital Gains Income: This type of income is earned from selling assets such as real estate, art, or collectibles. It is the difference between the purchase price and the selling price. 5. Social Security Income: This type of income is earned from the government and is available to those who have paid into the Social Security system. It is typically received during retirement. Understanding the different types of income can help you make informed financial decisions and plan for your future.