- Trading time for money
- Earn income when others work, (override)
- Earn residual income, (sometimes called "passive" income)
- Investment income, (your money makes money)
There is nothing inherently wrong with getting your money this way. The drawback is that there is a limit to how much time you can sell for money and therefore a limit to your income potential. Another drawback with this method is that once you have sold your time, it is no longer available to use for yourself, your family, or any other activities. And finally at some stage of our lives, we reach a point where we are no longer able to sell our time for money, (poor health for example).
2. Earn income when others work
This is the basic tenant of business, have a system that generates income, even when you are not directly involved. If you are the owner of a restaurant that sells hamburgers, you personally don't have to be cooking the hamburger, running the cash register, etc for the money to come to you. You hire others to do the work for you. You put people into your system of making and selling hamburgers, and the system generates the income.
The simplest of businesses to start and run is a business that operates on the Broker/agent business model. When agents provide services to the clients, you as the "broker" get a split, (portion), of the income generated. To increase your income, you only need to increase the number of agents in your "brokerage".
3. Earn residual income, (work once and get paid again and again).
This is sometimes referred to as passive income. People usually think of artist's royalties when I mention residual income, but in reality there are many other types of income that came from passive sources. A common type is the management fees earned by Brokers on the assets they maintain under their management. Although the percentages are usually small, the potential volume is essentially unlimited and so is the income potential.
4. Investment income, (your money is making money)
When your money is making money, you can eventually reach the point where you don't have to trade time for money.
This fourth principle is not nearly so complex as many people think. Now, if you need to manage a portfolio of several hundred thousand dollars or more, things may get a little more complex. But, since 43% of American workers have less than $10,000 saved for retirement, (more than half of American workers have less than $25,000), simple, easy to understand and follow investment principles will make the difference between a lifetime of financial stress or confidence.
53% of Americans have not even tried to calculate what they will need for retirement. That is both scary and sad, because it really is a simple thing to sit down with one of the 100,000 financial coaches who will, for free, put together a customized personal financial program for any person or family.
Having a clear, easy to follow, personal financial plan can allow anyone to have the opportunity to go from selling time for money, to having money flowing to you from multiple sources with little or no effort on your part.
