Prosperity Consciousness: Understanding Profit Income

Understanding Profit Income

Income, Profit, Proceeds, and Revenue - the words are used as loose substitutes in ordinary conversation, but they do have different shades of meaning. For example:

The term Income is used in accounting reports (e.g, an 'income statement') for the amount of money left over out of revenues after costs have been paid. There are various kinds, chiefly depending on whether you are measuring income before or after taxes have been paid and before or after interest has been paid.

Profit is a term used in economics for the money going to capital (as opposed to labor, land, or other factors of production). Also sometimes used as a synonym for income.

And Proceeds is the amount of money you receive from selling something. Proceeds may be 'gross' -- before your expenses, or 'net' -- after paying your expenses.

The word Revenue refers to the amount of money received from your business activities. It is the 'top line' in an income statement. 'Income' is the famous 'bottom line'. However, to get to the very bottom, you need to measure it after taxes and interest. It is what is left over out of this revenue amount after all costs have been paid.

Consider this statement: -- The revenue generated from the proceeds of the sales provided enough profit to the salesperson to make an adequate income. --

In the above example; the word 'revenue' is sort of all-encompassing. The word 'proceeds' implies the flow of revenue. The word 'profit' means after all expenses are paid and the word 'income' means 'take-home pay'.

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Passive Income

Passive income is income, regular earnings, that are derived from a business in which one does not actively participate. With passive income, you do the work once and continue to get paid.

Some types of passive income are: royalties from books, movies, or songs. Another source of passive income is real estate investments or business investments where you don’t have to be present to earn revenue.

Some people make a great living with passive income. Most passive income ideas will take a degree of upfront work to earn money, like writing an e-book. There are many stories about making $20,000 or more in a day or a week, however, for the most part, it usually takes a lot longer than that. So, it is no surprise that some will have small amounts of income coming from a few different sources to make a go of passive income. It is a long-term strategy, and definitely not a short-term strategy.

Prosperity Consciousness

Profitincome.biz is about the increase of your net 'take-home pay'! We accomplish this by helping you grow your Prosperity Consciousness.

Prosperity is the state of Consciousness that attracts things - it is the quest for enlightenment which begins with the unification of Philosophy, Spirituality, and Science.

 

 

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