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 Ari Talbid, and it all starts here on Personal Finance Redefined.

Welcome back to another episode of the podcast, and today's episode, we're just going to hop

right in because I've been getting a ton of listener questions, and it's really fun for me,

so thank you, keep submitting those. Once again, that's at personalfinanceredefined.com.

And once again, well, let's hop right in. So today's episode, ordinary income in capital gains. Two terms you may have heard of, two terms you may not

have heard of. Either way, I'm going to break them down and really help you understand how to

maximize your money from a tax perspective. So my goal is to have you quickly

and easily understand more about how money works. So remember, the goal is not to invest or make money

or save money for the sake of it, but for a reason. And that reason is different for everyone.

It may be financial independence. It may be having

funds available for a down payment on a new home. Whatever it is, it's about using your money wisely

so you can get to that goal. So today's episode is about ordinary income. Now, Ari, what does that even

mean? Well, as you know, the financial world wants to make everything as

complicated as humanly possible and use fancy words to confuse people. So I don't like that.

So what ordinary income is, is just more income. What do you mean, all right? Well, in terms of

using an example in the financial world, if you had a stock that you purchased

for $100 and it went up to $150, well, that's $50 of growth.

Now, that $50 of growth, that's what you have to pay taxes on.

Now, if you've heard me talk about it in other episodes, that's not the case in Roth IRAs,

some of these other retirement accounts that I talk about often.

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