There are multiple classifications of income. Most income will fall into any one of these categories.
Earned Income
Earned income is income that is earned through active work or employment such as wages, salaries or tips. Most income falls into this category, and this is the most reliable income type.
Passive Income
Passive income is income received from investments or ventures, where the individual is not actively involved. Some examples of passive income are rental income, and stock/share based income.
Portfolio Income
Portfolio income is income generated from investments in financial instruments, such as interest from savings accounts.
Gifted Income
Gifted income is income received in the form of gifts, cash or any other asset.
Benefits / Government Support
This is income obtained through government support or assistance programs such as unemployment benefits or social security.
Royalty Income
Royalty income is income that is received by allowing someone else to use or access your intellectual property, such as patents, copyrights, trademarks, or artistic works. Examples of this can be licensed music, book sales, or YouTube videos.
Windfall Income
Windfall income is unexpected Income such as winning a lottery, gambling or receiving inheritance. This is the least reliable form of Income.