5.2 Income Scources by Megan Gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a Made by Megan Gatsch en-us 2019-11-09 02:58:58 UTC 2025-11-19 19:30:02 UTC hello@padlet.com 3 types of income you can generate megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408949446 ~ Earned Income
~ Porfolio Income
~ Passive Income]]> 2019-11-09 03:20:28 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408949446 Earned Income megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408950347 Earned income is considered to be the salary/money made from employment (even if it’s salary or hourly income, as long as it came from working for someone else or your own consulting).

Ways to generate earned income include:
- Working a job
- Owning a small business
- Consulting]]> 2019-11-09 03:27:05 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408950347 megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408950410 “Additionally, earned income is taxed at a higher rate than any other type of income.
One huge benefit of earned income over the other income types is that you generally don’t need any startup capital in order to make earned income, which explains why most people rely on earned income from the start of their working life. In fact, earned income is a great way to start your investing career, as it allows you to save up cash that will help you generate the other two types of income” (7 Income & Careers).
]]> 2019-11-09 03:27:36 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408950410 Portfolio Income megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408953151 Portfolio income is any type of income made/earned by selling an investment at a higher price than what you paid for it. Some even refer to it as “capital gains” since the money is taxed by the federal government. 

Ways to generate portfolio income:
- Trading (buying/selling)
- Buying & selling real-estate 
- Buying & selling of any other assets]]> 2019-11-09 03:49:37 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408953151 Ups & Downs of Portfolio Income megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408954160 “It often takes a good bit of knowledge and experience to learn how to make money trading paper assets. Unless you have inside knowledge of the companies you’re trading, you must learn to read financial statements or how to analyze market trends if you hope to beat the market.” (8 Income & Careers)
Other downsides include:
- You have little control over your investments
- Generally requires investment money upfront

]]> 2019-11-09 03:58:45 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408954160 Passive Income megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408954654 “Passive income is money you get from assets you have purchased or created. For example, if you were to buy a house and rent it out for more money than it costs you to pay your mortgage and other expenses, the profit you make would be considered passive income.” (9 Income & Careers)
- if the businesses success was limited by the number of hours you worked, the income you made would be considered “earned income

]]> 2019-11-09 04:02:59 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408954654 Ways to generate passive income include: megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408955007 - Rental Income or Note Income from Real Estate
- Business Income (as long as it’s not earned based on amount of time/effort spent)
- Creating and Selling Intellectual Property  (i.e. books, patents, internet content, etc...)
- Affiliate or Multi-Level Marketing

]]> 2019-11-09 04:06:50 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408955007 BUT!! megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408955157 “Portfolio income certainly has some advantages over earned income. Once you have the knowledge and experience to generate portfolio income on a consistent basis, you can continually reap the benefits by reinvesting after each sale. Additionally, any portfolio assets held long-term are generally taxed at a lower rate.” (9 Income & Careers)]]> 2019-11-09 04:08:04 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408955157 Government Programs megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408957268 “Federal assistance lifts millions of people, including children, out of poverty and provides access to affordable health care.  Public programs lifted 40 million people out of poverty in 2011, including almost 9 million children, according to the Census Bureau’s Supplemental Poverty Measure, which counts non-cash benefits and taxes.” (10 Income & Careers)
Other programs include:
- Social Security 
- Medicaid
- SNAP (Supplemental Nutrition Assistance Program)

]]> 2019-11-09 04:30:16 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408957268 Social Security megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408957596 Helped to lift the largest number of people out of poverty; “the Earned Income Tax Credit (EITC) lifted the largest number of children.  Together, the EITC and Child Tax Credit (CTC) lifted 9.4 million people — including nearly 5 million children — out of poverty in 2011.” (11 Income & Careers)]]> 2019-11-09 04:33:36 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408957596 Medicaid megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408957813 “...provided access to affordable health care to 66 million Americans in 2010.  Because of Medicaid and the Children’s Health Insurance Program (CHIP), children are far less likely to be uninsured than adults.” (11 Income & Careers)]]> 2019-11-09 04:35:44 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408957813 SNAP megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408958121 “Programs like SNAP (food stamps), the EITC and CTC, and Medicaid support millions of low-income working families and help promote work” (11 Income & Careers)

“Researchers have identified long-term payoffs to programs like SNAP, EITC, early childhood education, and Pell Grants.  Research shows that income supports like the EITC and CTC both boost employment rates among parents and have long-term positive impacts on children — including better school performance — that can translate into higher earnings when the children become adults.  Similarly, a recent study that examined what happened in the 1960s and 1970s — when government first introduced food stamps county by county — found that children born to poor women who had access to food stamps had better health outcomes” (12 Income & Careers)]]> 2019-11-09 04:38:47 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408958121 My Personal Situation megan_gatsch https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408958602 My family is a middle income family so we are financially stable (enough). With that in mind I feel that the government that may best benefit my family would be Medicaid as I am the oldest of three kids. Our parents earn enough that we wouldn’t be considered for the other programs but healthcare for children in general is a big issue and it is an extremely important thing because without vaccinations and checkups from an early age people immune systems will eventually fail them.]]> 2019-11-09 04:44:01 UTC https://padlet.com/megan_gatsch/kw8kjvi5m28a/wish/408958602