Different ways you can earn money
🤔 Did you know that there are different ways you can earn money? 😮
And no, I don’t mean working different jobs. I mean there are different types of income.
Let me explain…
➡️ ACTIVE INCOME (WORKING INCOME)
This is the one we’re all taught from a young age; the one our parents taught us: Go to school, get a good job, work for the rest of your life. Here, you trade hours for dollars. The moment you stop trading your time AKA your life, you stop getting paid.
The biggest drawbacks with this type of income is you pay the highest taxes, somebody tells you how much you’re worth, somebody tells you what you can and can’t do, and there’s only so many hours in a day, so your income, through no fault of your own, is capped.
Most of us make money this way. For those on good money at the moment, consider this: while the money may good, how long can you see yourself doing what you’re currently doing? Can you continue to work the way you’re currently working for the rest of your life?
➡️ PASSIVE INCOME
Passive income is a great way to make money. This is where your money is made while you sleep. Examples of this are property and shares. However, the drawbacks for the average person, like you and me, is it requires large amounts of capital upfront and a constant stream of it for it to grow. I don’t know about you but I didn’t have $60,000+ in the bank, so making money this way was out of the question.
Shares? I won’t even get started on that. It’s high risk, high reward, and is heavily affected by factors outside of your control…
➡️ RESIDUAL INCOME
This type of income combines the top two. You do the hard work once and you set up a vehicle that pays you for the rest of your life.
Royalties from a creative project is one type of residual income. Think about Ricky Gervais with The Office. Everytime The Office plays on TV networks across the globe including Netflix, Stan, etc, he gets paid… Think about that. He gets paid today from the hard work he put in 17 years ago!
This is what I do now, as a side hustle, through network marketing.
It’s low to no risk, requires next to no capital, and is a vehicle that can be built in your spare pockets of time. The drawbacks with this business model, however, is that you need to be prepared to step outside of your comfort zone; it’s the only way to grow. You also need to be prepared to cope with the loss of social esteem from the ignorant people around you. Recognise that not everyone is going to see the simplicity of this business because of the way they’ve been trained to see the world.
If the above sounds like something you’re not prepared to go through, stick to your day job. However, if doing what you’re currently doing is not going to give you the life you want, open your mind and consider the alternatives…. It may very well change your life 💯