Every genuine seeker of wealth and riches must of a necessity understand the dynamics of income generation. Generating income is fundamental to the accumulation of wealth. We all make money and become rich by generating income.
The ability to generate income is your key access to the world of wealth and riches.
There are different ways of generating income. And these different ways require different personalities- different frames of mind, different technical skills, different educational paths, and skills.
For these reasons, different people are attracted to different lines of income generation. Generating income is more about who you are at the core- your core values, strengths, weaknesses and interest.
It is this core differences that attract us to or repel us from the different ways of generating income. Changing how we generate income means redirecting some internal core values.
By knowing the different ways of generating money, you’re better positioned to choose an income generation path which might be best for you.
No one way is really better than the other; they all have their strengths and weaknesses.
The different ways of generating income is all about the different ways of looking at the world of money.
Basically there are three types of incomes:
- Earned Income: Earned income is any income that is generated by working. Your salary or money made from hourly or monthly employment (regardless of whether that salary or hourly income came from working for someone else or from your own “consulting”) is considered earned income. Earned Income = Income from a job.
- Passive Income: Passive income is money you get from assets you have purchased or created. Passive income is generally recurring income; once the investment is made, and assuming it is a good investment, the income will continue to come in month-after-month or year-after-year, with little additional work by you. Passive Income = Income that comes in on a regular basis.
- Portfolio Income: Portfolio income is any income generated by selling an investment at a higher price than you paid for it. Some people refer to portfolio income as capital gains. Portfolio Income = Income from paper assets or capital gains.
The greatest discovery you can ever make is to discover yourself. Self –discovery will lead to self recovery. Know who you are, what you have, where you are coming from, and where you are going.
Listen friend, you need to truly know yourself, your strength, values, skills and interest.
Know yourself and be true to yourself!
“The life which is unexamined is not worth living.”-Plato
To Your Prosperity
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