Income Types and Strategies

The video tutorial explores various income streams, emphasizing the difference between active and passive income. Active income requires time and presence at work, while passive income involves earning without direct involvement. The tutorial also covers earned and profit income, highlighting the transition from worker to business owner. It concludes with a discussion on the risks of business ownership and a preview of future lessons on passive income.

What is one way musicians can earn money?

• By playing live concerts

• By having their music played on the radio

• By selling merchandise

• By teaching music lessons

What is the main advantage of having multiple income streams?

• It eliminates the need for a primary job

• It increases the amount of money flowing into your bank account

• It reduces the amount of work needed

• It allows you to work fewer hours

What is active income?

• Income received without working

• Income from investments

• Income from renting property

• Income received for performing time-consuming tasks

What happens if you miss half a day of work in an active income job?

• You miss half a day's worth of income

• You still get paid for the full day

• You get a bonus for working less

• You have to work extra hours the next day

What is a common strategy to start earning passive income?

• Rely on government grants

• Work to earn active income for years and save money

• Start with passive income immediately

• Borrow money to invest in passive income

What is earned income?

• Income from investments

• Income from selling products

• Income from renting property

• Income earned as a reward for showing up to work

Which of the following is NOT a form of earned income?

• Salaries

• Dividends

• Wages

• Commissions

What is profit income?

• Income from investments

• Income from a salary

• Income left after paying business expenses

• Income from renting property

What should business owners do to avoid failure?

• Rely solely on loans

• Do research, plan carefully, and have a backup plan

• Avoid planning

• Invest all their money in one business

What will the next lesson focus on?

• How to start a business

• Different kinds of passive income streams

• Different kinds of active income

• How to save money