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