over a given period of time. This definition has three important points, namely: Real income is a flow of goods and services, it is not stagnant. It consists of goods and services which might or might not be available with money, e.g., produce from your own land, services of a household. There is a time period involved – it may be a month or a year.
Real income is of two types- direct income and indirect income . Direct Income – consists of those goods and services available to the family members without the use of money. For example, services rendered by family members, like cooking, laundering, stitching, maintaining kitchen garden, etc. A house which is fully paid for and community facilities like parks, roads, libraries also come under direct income.
. Indirect Income – those material goods and services which are available to the family only after some means of exchange (ordinarily money) has been obtained, e.g., use of money to buy good quality vegetables because it involves one’s skill and ability to select. (c) Psychic Income is the satisfaction that results from the ownership and utilisation of goods and services. It can also be defined as the satisfaction derived from real income.
It is difficult to quantify psychic income in terms of rupees. It is a form of hidden income. It is intangible and subjective and the most important in terms of quality of living. Identify all the sources of money income available to your family in a month.