What is Independent Income? How can you generate it?

What is Independent Income? How can you generate it? Economy and Independent Income. A new definition with detailed strategies to achieve.

What is Independent Income?

Wikipedia defines Independent income as a stream of income received without directly exchanging labour power for it. Examples are interest on money capital, dividends earned by share ownership, rental income, etc. [1]

Basically independent income is any income that you have and are not earned (or active) income. Active income is where you work for someone or provide specific services and you are paid for that work. This could be your job, if you are consulting for a company, or own a business where customers pay you.

As you probabely thought by now independent income sounds much like passive income which in the most part they share similar strategies and definitions. However, nowadays there are lots of people who are after income independent of sticking to a particular company or becoming location independent (remote) with close to zero attachement to the company.

In this website we are going to cover various forms of independent income. Wether it is a passive income, a job or position that you can work for independently or a business that you can construct but it will not be dependent on you. So here we have our own definition to have a freer lifestyle for everyone with the highest income possible and not just a lucrative income that talented few can have.

Economy and Independent Income

Many economists and other professionals[2] consider that there is a need in modern capitalist economies for policies that encourage the acquisition of income-generating capital assets that supplement or replace employment-generated income. This need, it is argued, is driven by the progressive replacement of labour with capital in modern production.

Traditional economic theory counters this by contending that employment created in the growing service sector can absorb labour displaced in manufacturing. But this is by no means a smooth process since extensive retraining may be required before labour can be transferred to entirely new areas of activity.

How can you generate Independent Income?

We will explore each of the items seperately in the future.

Passive Income

1. Interest on money capital: You’ll receive interest on your bank account savings.
2. Dividends earned by share ownership: The stocks and shares you invest in may yield dividends, or you be paid via dividend if it fits with your company structure. Dividends are more commonly known as a share of the profits.
3. Rental income: Once you own property, you can begin collecting rental income as an added monthly income stream.
4. Capital Gains: Capital Gains income is acquired through the sale of assets such as art, stocks, business, and loans.
5. Royalties or Licensing Income: Are you a creative individual who produces music or photography content? Licensing this for specified public usage means you can create royalties as an extra stream of income.

Remote / Online Jobs

1. Virtual Assistant
2. Online English Teacher
3. Online Sales
4. Freelancer
5. Consultant or Coach

Independent Business Income

Alongside earned income, you may receive extra income from businesses you have set up. These are otherwise known as your side hustles, and may be made up from just one source or could be multiple.

1. Blogger or Content Creator
2. Amazon FBA Seller
3. Affliate Marketing
4. Digital Product Creator

Source:

[1] Wikipedia https://en.wikipedia.org/wiki/Independent_income

[2] James S. Albus Archived 2007-09-29 at the Wayback Machine, Peoples’ Capitalism (1976).

[3] Invested Wallet https://investedwallet.com/7-streams-of-income/