SL has its own economy, and it's sometimes hard to follow, so if you are interested, there are residents offering classes on economy. To summarize it, there is an inworld currency, the Linden Dollar (L$), and you can use it to buy objects, land, clothes and services. Uploading stuff (images, animations, sounds) also costs L$, as well as rating other residents.
Thanks to several market exchanges like the LindeX, among others, you can convert US$ into L$ and vice-versa. LindeX works like a real life money exchange, where people trade on the floor placing buy or sell orders for US$ or L$, currently as an exchange rate of around US$3 for L$1000. Money is not "created" that way — it only changes hands!
So, how do you get money? Besides a limited amount that you get when joining (nothing for a Basic account, L$1000 for a Premium), Linden Lab will also pay you a "weekly stipend" every Tuesday. Imagine it like a "social payment”"which will allow you to do some basic spending without working, Premium accounts recieve L$400/week.
If that's not enough income for you — and believe me, making a living from gaming at casinos or betting on horse races is not a good idea! - you need a job.
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