Earning a living

Perhaps the most common ways people earn income are in the form of hourly wages or an annual salary. But this is far from the only way you can earn an income. Are you taking advantage of some of the different ways you can make a living?

The most common forms of income

Jobs of all types come with an income. This can be in the form of being paid an hourly wage, an annual salary, or commission on a project-by-project basis. These forms of income are likely the most common and straightforward ways to earn money. Hourly and commission wages give workers the opportunity to work more hours or take on more projects if they want to make more money, while a salary is set in a contract and doesn’t fluctuate on a short-term basis. Another form of income in this category can come from a product or service of yours that you’re able to sell.

Passive income

Passive Income Examples, Property or Stock Market Investments, Earning Interest

This category of income comes in a few forms. One is through investments in things like the stock market or in a property. The stocks you invest in can potentially become more valuable over time, giving you the opportunity to make a profit without having to directly work for it. If you own a property, you can later sell it for a favorable price or lease it out tenants looking to rent. Each of these options will provide you with a source of income that doesn’t require the same time and energy that a job does, making this an appealing route for those looking to grow their wealth. The downside, of course, is that in order to invest, you need to have saved up enough money on the front end to make the initial investment.

Another type of passive income comes from what you earn on interest. When you deposit money into a savings account or certificate of deposit, the bank typically allows you to accrue interest over time. The interest rate is agreed upon opening the bank account and can become a valuable source of income if you’re able to keep money saved up in your account.

Government payments

Depending on what you’re eligible for, there are various government programs that provide you with a source of income. This includes Social Security Supplemental Income for those who have reached retirement age (at least 65 years old) and Disability Insurance for those who are unable to work due to a disabling medical condition. 

Keep your options open

Whether you’re retired or just beginning your working career, it’s always good to consider the different ways you can grow your wealth. 

Westfield Bank’s personal banking team is here to help you reach your financial goals. Get in touch with one of our local professionals today.