Types of income

There are a bunch of different ways you can get money. Some you have to work for, others your money does the work for you. Let’s take a look at a couple here.

• Wages
  This is income you earn from a job, where you are paid an hourly rate to complete set tasks. The more hours you work, the more money you earn.
  
• Salary
  Similar to wages, this is money you earn from a job. Your annual salary is usually set out in a contract and paid either weekly, fortnightly or monthly. Usually the amount is regular and you won’t earn more for extra hours worked.
  
• Commission
  Commission is where you earn money for completing a task. This is common in sales roles. You might earn a set amount of money for each sale you make or you might earn a percentage of a sale price for your work. Commission is based on results rather than time worked.
  
• Interest
  Interest is something that your money earns for you (yay!). Interest is usually paid on money that you have deposited with your bank. Interest varies between account types and is usually expressed as a percentage per year (or per annum).
  
• Selling something you create or own
  Maybe you’re handy with a needle and thread or you’re a gifted mathematician. You might have a tonne of stuff you don’t want anymore. Selling things you make, your skills as a service or stuff you own and no longer want are all potential ways to bring in some cash.
  
• Investments
  Investments like property, shares and art can all potentially earn money for you, either through an increase in their value (this is called capital growth) or in the case of shares, by paying you an amount of money per share you hold (this is called a dividend).
  
• Gifts
  Who doesn’t love a cash present? Birthdays and Christmas can be a great and sometimes unexpected source of income.
  
• Allowance/Pocket Money
  Money your grown-ups give you on a regular basis. They may or may not expect you to do jobs in return for the moola.
  
• Government Payments
  Depending on your situation you may be eligible for assistance payments from the government.

Remember, getting the money is only part of the picture. What you do with your money can be a game changer.