Income is money received from work, investments, or other sources. Wages and salaries are the most common form. Interest, dividends, rent, and capital gains also count. Governments collect income data to calculate taxes and measure economic health. Households use income to cover expenses and build savings. The sources of income shape financial stability. A single salary is fragile. Multiple streams are more resilient.

Economists distinguish several types. Earned income comes from labor. Passive income comes from investments or rental property with minimal active effort. Portfolio income comes from dividends, interest, and capital gains. Disposable income is what remains after taxes. Discretionary income is what remains after taxes and essential expenses. Each measure tells a different story about financial flexibility.

Income inequality has widened in many countries. Top earners have seen their share grow. Median wages have stagnated in some economies despite overall growth. The causes are debated: technology, globalization, tax policy, and declining union membership all play a role. Income mobility matters too. A society with high mobility offers hope. A society with low mobility locks people in place. Income is more than a number. It shapes opportunity, health, and life outcomes.

Common types

• Earned income
• Passive income
• Portfolio income
• Disposable income
• Discretionary income