Sunday, August 1, 2010

8 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.)

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* Auto Money

That which comes automatically after you have planted the tree. E.g.

- Rental income.

- Royalty income.

- Interest income.

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* 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

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* 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

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* 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

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* Value Money

Money you get after "working". E.g.

- Salary

- Labour rate

- Consultation charges

- Contract killer's payment

- Shopkeeper

- Begging

- Self Employment

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* Privilege Money

Money you get because of the value hidden in your brand. E.g.

- Celebrity endorsement

- Brands

- Lineage

- Dynastic rule

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* 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

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* Chance Money

Which you get by sheer chance / luck. E.g.

- Lottery

- Lost & Found

- Inheritance

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