Active and Passive

There are two types of income stream, active and passive. Your business is most likely using an active income stream. This is where you do some work or provide a service, and someone pays you for it.

Disposable income is the amount of money left over after people pay their taxes. Disposable income is all of the money that is available to a person or family after their taxes are paid. Discretionary income is the money that remains after all necessary living expenses are paid.