Contract work, waitressing, babysitting, commission Pay

You know how most people get a set amount of money or salary from their job every month. But that's not true for everyone. Some people get paid in very different ways. Some examples can be writers who are paid per story, plumbers who get paid for each job, or salespeople who earn a percent of what they sell. Think about a babysitter, they often get paid in cash for each hour they babysit. These are called non-typical pay structures.

Now, let's understand what these jobs look like:

An employee works for an employer and collects a regular paycheck. It's the usual route.

A freelancer is a self-employed person. They get to choose what they want to work on, who they want to work for, but they are paid per project, not a fixed monthly amount. They typically work for multiple clients at the same time. Examples are writers, graphic designers, and marketing specialists.

Independent contractors are similar to freelancers, but there's more predictability to their work. These individuals work with a single client at a time. Independent contractors are likely to have more consistent income than freelancers. They are paid hourly, or per job completed. Examples are plumbers, dentists, and lawyers.

Gig workers have short, one-time jobs. They are paid per gig they complete. An example is a person who drives for Uber.

Commission pay is like a reward you get for making a sale or closing a deal. The more sales you make, the more money you earn.

In some jobs, employees get a base salary plus a commission - extra money based on how much they sell. So, let's imagine you work in a shoe shop. For every pair of shoes you sell, you get a small amount of money as commission. If you sell a lot of shoes, your commission can add up to be a nice sum over and above your salary.

Now, what about independent contractors? They often work entirely on commission. That means their pay depends entirely on their performance, on the deals they close or the sales they make. Let's take an example of a real estate agent who is an independent contractor. They earn a commission from selling houses. If they sell a house for $\mathrm{\$}\mathrm{100,000}$‍ and their commission is $3\mathrm{\%}$‍, they will make $\mathrm{\$}\mathrm{3,000}$‍ on that one sale. So, the better they are at selling houses, the more money they earn.

Other independent contractors who get paid commission are travel agents, recruiters, and sales representatives.

Let's talk about jobs where people earn tips, like waitstaff at a restaurant. A big part of their earnings comes from tips which can vary a lot. This could depend on how busy the restaurant is, how generously customers are tipping, and the overall service. Babysitters, dog sitters, and house cleaners are often paid in cash for tasks they complete.

Passive income can be an interesting way of making your money work for you. Suppose you had some money saved up and decided to buy stocks from a successful company. Over time, as the company grows and profits, the value of the stocks you bought might increase. When you sell some of the stocks, you make money, because you are selling them for more than you paid for them.

Sometimes, the company might even share parts of its profit with you - these are called dividends. Without having to work a single shift, you are making money. This is an example of passive income from investments.

Similarly, if you bought a house or an apartment and rented it out, the rent money that comes to you each month is also passive income.

Although it sounds pretty straightforward, passive income needs care and sometimes advice from financial experts.