3 Possible Income Streams

Before we could create wealth, we have to be aware that there are 3 possible income streams

• earned income
• investment income
• passive income

Earned income is the most common stream for many people, you go to work and get paid salary every month. You trade your time, talent, capability, and energy for income. If you do not work, you don't get paid.

Investment income is the income stream we receive when we invest in asset class such as stock, bond, or fixed deposit. In another word, we trade money for money using our talent, time, capability, and energy for income.

Passive income is the income stream that comes from an income source that regardless of whether or not that you are working such as:

• Profit from business as a business owner
• Rentals
• Royalties
• Franchises

Currently, I am working towards increasing wealth through investment income and target in 5 years time that I will not need earned income for a living.