Choices! What will it be? #71

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Hello everyone, I have been racking my brain on the choice to make for this week. It hasn't been easy picking one to write on...but the word 'in come' (not income) keeps on appearing in my head.

I am certain that all my life, I haven't seen it that way, I have always pronounced and spelt it as income but today I saw it as IN COME..

Just like it is written, Income can be said to be gotten from IN and COME. In a lay man's terms, we could just say something that comes in is called income, but let's look at the meaning of income.

Income can be defined as the inflow of resources, cash, wages, revenues and interest to an entity or company.

That means the money that comes to us directly or indirectly as our salaries or wages or profits is known as income. Income is all about what flows in to us in terms of finances.

Some incomes needs active participation to get it while others don't and that will lead us to the types of income. For the sake of this content, I will be looking at two types of Income, which are Active and passive income..I know we have heard of this before now.
Before explaining between active and passive income; let me bring in this story...

I am a classroom teacher and also an undergraduate who is waiting to be cleared and I have been looking for another source of income which wouldn't take my time. I knew I had to teach from 8am till 4pm but the salary I got from teaching was never enough. Sometimes I wondered why teachers are paid so low compared to other areas of discipline and for the same amount of time spent.

Well I was good in writing a little and I knew I could put my skills into good use. That was how I knew about steemit, a platform where I can do what I love doing in my spare time and also earn passively from it.

Now with this story, I can now go back to explain perfectly well what an active income and passive income are...

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           Types of Income

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• Active Income: This is the kind of inflow of resources or finances that comes as payment for direct services, skilled trades, healthcare professionals, sales and also marketing. Jobs from this category demands direct contact with your clients and also needs hands on the job.
  Active Incomes are most times the kind of income that will take care of the needs.

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• Passive Income: Passive incomes can be incomes which are gotten from investment, rents, interest from loans. Passive incomes helps in assisting the main income.

Sometimes, passive source of income could also be an active source of income. For example: Since taking up writing of content on steemit, I have tried to study to be able to hone my writing skills and invest more time in writing.

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Why should you have more than a source of Income?

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Having just one source of income might never be enough. Sometimes it is inadequate to have one source of income. With the inflation in goods and services, it is pertinent to have more than one source of income. One could have one source of active income and then numerous passive income to support.
What are the benefits of having more than one source of Income? Well the answers to this question is given below:

• When we have more than one source of income, we can save with flexibility for the future. It will be easier to save some money, so that it can be reinvested likely

• Someone who has multiple source of income won't depend financially on others. A lot of people can't even afford meals because they don't even have an active source of income.

• Having multiple source of income leads to living a better life. The income we generate can affect our peace of mind, the way we eat etc.

Income is of great importance in our society. Infact people place you higher up the ladder if you can have a great source of both passive and active income.

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How can I Make Sure my Income is more than my needs?

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• To make sure your income isn't squandered, always set financial goals. Make a precise estimate of how much should be on expenses and how much you would save.

• Avoiding impulse buying is very important for our income.

• Learn to have a monthly budget...this will help to keep your spendings in check.

Our income is a very important aspect of our lives. We must always try to use our incomes wisely. Spend more on the necessities, keep some for your wants and then save!

Form the habit of saving your income.

Thanks for reading my post...

I invite @vudeme123 and @usoro01 to participate in this contest.