At a glance, income, investment and wealth seem to be similar and we do not pay any particular attention to these things. However, if we analyse deeply there are some fundamental differences between these things and knowing these differences can help us better devise our financial goals in our life and thus achieve financial security.


Income is something that you earn on a regular basis from either your work or investment. If you are earning an income from a job, it is important to note that this income is a trade-off for the time you devote to that job. If you do not or cannot devote your time, you lose your income. For instance, if you become sick and are unable to work, then your income will stop. However, if you are earning an income from an investment, such as dividend from stocks, rental income from your properties, passive income from your blog and so on, you will receive an income without devoting your time. Since there is no need to swap your limited time for this income, the potential of you earning this income is technically unlimited.