Types of Income Sources
When thinking about income sources often the thought is income from a job, retirement, or disability payments. While these are indeed income sources, what category do they fall in? There are three basic types of income sources, fixed income, residual income, and sporadic income. The sources listed above are examples of fixed or consistent income. In this session, you will explore the different types of income, how to recognize what type of income sources you have, and a highlight of why they are important.
As an example, when building a budget it is unwise to count on sporadic income since it is not always available. Residual income on the other hand is a usable income source for building a budget as is the fixed or consistent income source.
So why listing sporadic income sources important? You can use these income sources to pay down high-interest debts like credit cards, saving you a lot of money in the end and boosting your credit score.
Make sure you have a copy of the 'Heal Your Finances' workbook so you can complete the exercises. It is recommended that you keep a fresh copy for your own personal income and budget plan, and another one to do the class exercises.
If you do not have Excel or some other app to open the Excel file you can put the copy on your google docs platform (google sheets) and complete the exercise. Then you can provide a link to the document or download the completed file to attach to your assignments or discussions. Make sure to keep the class working copy public so the instructors and your peers can open it and review it in the discussions. In the discussion section, it is fine to include a screenshot of your workbook page.