Understand the differences between the 3 types of your income: Earned Income, Investment Income and Passive Income.
Earned Income: Money that you earn from work, such as a salary or wages.
Investment income: Consists of interest and dividends you receive on investments.
Passive income: The money you earn by providing a service rather than actually working, such as if you own a rental property and someone else lives in it and pays rent to you.
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