Understanding Income and Expense
Income Income represents the money that is coming into your pocket by doing some job to business. Income can be of many types. For simplicity, we have divided income into two types - Active Income It is income that can be earned till the time you are actively working. Income from your job or business is an example of this. Passive Income Passive income is one of the types of income for which you need to work for a limited time and it generates income for many years. Best Passive Income Ideas Primary Income This is the income on which your expenses are primarily dependent. Secondary Income You can think of it as income from a side business or a second job. Expense Expense represents the money that is going out of your pocket by purchasing some product or service.