← Glossary/Finance
Asset Income
Money that arrives because of something you own, whether or not you worked that week.
Example
Priya's uncle rents out a flat for $700 a month. He had an operation and could not work at all for three months. The rent still arrived every month while he recovered.
How it fits in
This is the slowest kind of income to build, because you need the asset before it can pay you. Savings interest, rent, and royalties all sit here. It behaves unlike a wage or a freelance fee, both of which stop the day you stop. Owning something is not enough on its own: a shop you also work in behaves like a job, because it closes when you are not there.
Where this is taught
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.