Monday, March 23, 2009

Types of Money

Depending upon the way it comes, money can be categorised into following types.
Pl note that a particular 'type' of money can be put in more than one categories. I have categorised them here as per the best fit.

* Auto Money
That which comes automatically after you have planted the tree. E.g.
- Rental income.
- Royalty income.
- Interest income.

* Smart Money
When you 'make money from money' much faster or much more in proportion or very very easily. E.g.
- Stock market
- Leveraging debt
- C & F agents who deal in bulk and get % 'cut' on just forwarding / handling
- Betting
- Franchising
- Multi-level marketing

* Trick Money
When you make money out of thin air; when you exploit the technical inefficiency of the money systems. E.g.
- Hedge funds
- Buy in Spot, Sell in futures or vice versa
- Benefitting from difference in currency values in different markets

* Strategic Money
When the money you get is because of your strategic position. E.g.
- Close associate or a family member of an influential person making money
- Black marketing
- Gatekeeper "tax"
- Reward money to an informer
- Bribe
- 'Pandits / Pandaas'
- 'Hafta' / Protection money
- Monopolies
- Compensations, Fines, Penalties
- Blackmailing

* Value Money
Money you get after "working". E.g.
- Salary
- Labour rate
- Consultation charges
- Contract killer's payment
- Shopkeeper
- Begging
- Self Employment

* Privilege Money
Money you get because of the value hidden in your brand. E.g.
- Celebrity endorsement
- Brands
- Lineage
- Dynastic rule

* Opportunity Money
That which you get by exploiting the instantaneous opportunity (only time bound).E.g.
- Dog who sees the theif with the booty gets either the bullet or a bone.
- Mobile Shops at special Fares
- Black-marketing
- Seasonsal businesses
- Occasion specific businesses
- Blackmailing

* Chance Money
Which you get by sheer chance / luck. E.g.
- Lottery
- Lost & Found
- Inheritance

Note:- This article is for awareness about Money principle and is not to endorse or reject any particular type. Illegal money is an offence.

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