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What do you understand by real income? Define its two types and two ways of increasing this income.

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Real Income: is the flow of goods and services that is available for certain period of time to meet the needs of the family. It is of two types. 

Direct Real Income: is income which is received by members of the family without using money. Example are use of family assets, use of community facilities, skill of family members. 

Indirect Real Income: Income which is generated by the family members with some medium of exchange, usually money is involved. Examples are: 

i. Goods & services by paying money 

ii. Fringe benefit 

iii. Barter system 

Increasing Direct Real Income:

 i. Using skill of family members such as stitching of clothes, gardening, making pickles etc. 

ii. Study home and not taking tuitions. 

iii. Taking home made tiffin 

iv. Using carpool & public transport 

Increasing Indirect Real Income: 

i. Hire maid for services. 

ii. Buying labor saving devices. 

iii. Company’s accommodation. 

iv. Reimbursement of bills 

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