finances can be complicated but they don't have to be i break down financial topics that may seem

complex and overwhelming so you can start taking action on your financial goals i'm a

tally and it all starts here on Personal Finance Redefined.

Welcome to another episode of the podcast.

Today's episode is all about income and specifically earned income versus passive income.

So when it comes to thinking about income, it's interesting because not all income is the same.

That's like saying I like movies. Well,

what kind of movies? Horror movies, drama, comedy, income is very similar. The way you make money

is important to note because reporting all income, the same way, could lead you to paying taxes

that are completely unnecessary.

So today's episode is about the difference between earned income and passive income.

But in general, there are three types of income.

There's earned income, there's passive income, and then there's portfolio income.

Earned income is required to contribute what I discussed in my previous episode, IRA versus Roth IRA. So what is earned income technically? Well, earn income is income you

earn working a full-time job or running a business, but that does not include a rental,

a real estate business, or property in most cases.

Passive income, well, that's income earned from rent, royalties, and stakes in limited

partnerships.

So that's earned income and passive income, but today's episode I'm also going to be talking

about portfolio income. Now, that's going to be any income, but today's episode I'm also going to be talking about

portfolio income. Now that's going to be any income you receive from dividends, interest,

and capital gains from stock sales. So when you realize a gain or a loss, that's when you realize

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