There are three broad classes of income :
Earned Income: is generated by working, such as salary or money made from time-based employment which can include consulting, working a job, running a small business, gambling, etc. Income is linear with the activity: once you stop working, you stop earning.
Portfolio Income: is generated by selling an investment at a higher price than the original cost (capital gain). As life is, these investments include a high level of risk as one can generate gains (generally) proportional to the capital invested (that can be reinvested increasing returns) or losses Having a crystal …