Exploring the Different Sources of Income

Exploring the Different Sources of Income

When people hear about income, many people think about their job as their only source of income. However, there are several other sources of income out there that could let you earn extra money while keeping your job. Exploring these different sources of income may help you build wealth and achieve your financial goals. However, if you are struggling with bankruptcy, then consider asking a Tullahoma bankruptcy lawyer for help.

Active Versus Passive Income

Active income is the income you make from the job you work at each week. Jobs like these might be located on the job site or remotely from home. Either way, these jobs require continuous work to earn continuous paychecks. There are multiple types of active jobs out there that range from cashiers to CEOs.

Unlike active income where you have to keep working to earn income, passive income is the opposite. You can keep earning passive income without ever working again. However, this does not mean that passive income does not require any work. Passive income often requires a temporary amount of work that turns into continued pay despite no longer working.

For example, an author has to spend time writing a book. Once that book is published, the author can continue making money from continued sales of that book without ever having to write again. The same thing can work for photographers, filmmakers, musicians, and other artists.

Selling products that earn royalties is not the only form of passive income. There are multiple ways to earn passive income online and offline. Some examples include renting out a room, investments, annuities, selling online courses, and monetizing websites.

Other Sources of Income

There are sources of income outside of active and passive income. These include government unemployment benefits and financial assets. Under certain financial circumstances, you could qualify for government unemployment benefits. Those who have lost their jobs for insufficient reasons might be eligible for unemployment insurance.

Other programs that provide assistance include self-employment assistance and unemployment education programs. Some of these programs may offer short-term or long-term financial assistance. Workers’ compensation provides large sums of money to those who cannot work due to an injury on the job.

Disability benefits programs offer monthly payments to those who can no longer work due to a disability. Welfare and Temporary Assistance for Needy Families (TANF) provide those in need with money for food, housing, bills, and child care.

When it comes to financial assets, some of these can provide a cushion for unexpected expenses or can help you build wealth. These include savings accounts, revocable trusts, stocks, bonds, certificates of deposit, mutual funds, money market accounts, 401K, retirement plans, and pension funds. Some of these will increase with interest over time, leading to more money as time passes.

Contact Tom Bible Law for Legal Aid

Do not give up if you find yourself falling into bankruptcy. Call us at Tom Bible Law today at (423) 424-3116 for a consultation about your financial situation. Our team of Tennessee bankruptcy attorneys is ready to help you explore various options for bankruptcy. We can be found throughout the Tennessee cities of Chattanooga and Tullahoma.

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