(TheDailyCurrents.com) – Getting used to traditional income means of working a standard job is easy.

For many, this type of income is all they know about, or maybe all they think exists for them.

However, there are seven main types of income, and you can boost your overall income by generating multiple streams.
 

Income You Earn

This is the most common and well-known type of income on the market.

This income is generated from hourly or salary positions where you provide certain hours and work for an established wage.

This income is generated on a pay schedule, whether weekly, biweekly, monthly or even bi-monthly.

This income is often the most reliable, as you know how much to expect and when to expect it if you are in a salary position.

If you are in an hourly position and your expected hours are cut, you will not generate as much, and that can be stressful if this is the only income.
 

Royalty Income

Consider earning royalty if you want an income without additional effort.

You do have to generate some intellectual property initially that was developed, and you have ownership over it as the owner or inventor.

Once this property is sold to various customers through third parties, you get a portion of that income generated back to you as the inventor.

To get the most out of your royalty income, you need to generate content or property that is in high demand. The downside to royalty income is that you will not generate anything if your property isn’t selling.
 

Rental Income

Do you have an additional property that you can rent out? Whether home, land, or equipment, rental income can greatly boost this economy.

The larger your space, the more income you can generate each month. You can use this income to pay the mortgage on the property you rent and then pocket the rest for expenses or profit.

If the property has no mortgage, then everything you earn monthly is pure profit and can be applied to your total income.

The downside to rental properties is that you are responsible for maintenance as a landlord so those expenses will be subtracted from the income.
 

Dividend Income

There are some questions about dividend income and what it means. If you have a stock investment that issues dividends, you can generate an income from these stocks.

This is another type of passive income that requires nothing more than investing an initial amount of money and letting it sit as businesses and corporations continue to grow and diversify.

As more dividends are generated over time, you will earn an income as a shareholder, and this income is based on how many shares you own.

There are some cons, especially if the stock starts to fall, the income earnings will not yield well, and you could break even or come out less at different times.
 

Capital Gains

If you have some property or assets with a high value that can provide you with a substantial capital gain income.

These assets include anything from artwork and equipment to land, stock, or commercial space.

The capital gain percentage can vary depending on how much you purchased the property for initially and how much you sold it for.

Also, if you have a loan balance, like a mortgage or lien on the property, you must deduct that amount from your total capital gain to get a true amount you can apply to your income.
 

Profit Income

Are you looking to put your skills to the test? If you want to start a side hustle business where you are working as a contractor, the money you earn from these transactions is known as profit income.

This income can be as much or as little in the amount of work you take and the charges you place on your services for potential clients.
 

Interest Income

Are you comfortable with lending out funds to friends and family members? If so, any interest you apply to their loan when they are paying you back is considered interest income that can be added to your overall income.

Also, interest income is generated through savings accounts connected to money markets and CDs through financial institutions that generate a certain percentage of interest over a certain period.

You can have multiple accounts like this and add as much or as little to them to generate compounding interest.
 

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