This post is not really about different types of income (ways people get money). This post is about YOU. I wrote this post for all poor people out there. Listen up, because this might be the most valuable financial lesson you will ever receive. Rich folks create different sources of income.
Poor people use only two sources: JOB and pension/401k/IRA/disability . Now, there is nothing wrong with a job under one condition. Your job can be a fantastic source of income, as long as it is used to create other sources of income. If your job income is not used to create other sources of income, you will be poor for life.
Your first step is to realize that rich people don’t live off of their jobs. They have other sources of income, often many sources. So have a look and learn. Don’t stay poor for life. Your goals, remember?
The most popular way people get money. Although many of us, especially entrepreneurial types don’t value this source of income, we have to understand that many use their job as a starting point in creating other sources of income. The sad part is that most never use their job income as a springboard to creating other sources of income.
Income derived from trading assets, like buying and selling stocks, real estate etc. Also known as capital gains. It takes a considerable amount of money, knowledge and risk to earn this kind of income.
Old folks and sometimes young live on this kind of income. Pensions are rare these days. There is an old man in a dilapidated apartment on the picture for a reason. This income is usually (not always) very low. And you got to be old or disabled to tap into it.
Some rich people live off of this form of income. This happens because they have substantial assets that produce interest. The key here is substantial. You can’t live off of interest or dividends if your assets are not big, really big, like millions of dollars.
You own apartments, offices etc. Tenants pay monthly rent. If your rent is high enough to cover taxes , maintenance and so on, you have money left. That is your income.
You write a song or a book. Every time your song is played on the radio or your book is sold from iTunes store you make some money. For example 10%.
Income earned from selling stuff (usually downloadable information products) from a website that is designed as a sales machine. There are different ways to go about it, but it all comes down to driving traffic to a website where people buy products.
The list is not complete. I will update it as I learn more.
I know this post can open a can of worms and some might even get angry. Life is not fair, some might say. But some will notice the world of opportunities open. To me knowing different sources of income is like knowing a very valuable secret.
Now you know it too.
What are you going to do about it?
I would love to see your comments, Tweets, Shares:)