Earned Income

Your main goal largely determines your focus. If your main goal is to cover your expenses, then your focus will be on increasing your earned income. If your next concern is how you'll afford retirement, than you'll probably save some of your income for your retirement costs. In order to afford the retirement savings, you again focus on increasing your earned income.

Working for earned income is that the first rung on the financial education ladder. It requires little or no financial education and typically requires 40 hours/week. People who spend their life focused on earning income limit themselves to the poor or bourgeoisie . The poor work to earn an income, which they spend completely on expenses. The middle class also work for an income, which covers their expenses, liabilities (mortgage), and retirement savings (portfolio).

Rich people don't work for money, they need money work for them (passive income). They replace their earned income with streams of passive income. More specifically, they manage businesses and real estate. The process by which you change earned income to passive income is named investing. Your degree of data and understanding determine the success or failure of your investment plan.

The degree of data and understanding you've got are associated with the quantity of your time you invest into learning and increasing your knowledge. Rich people may or might not even have portfolio income, but this is often not how they become wealthy.

Therefore, if you want to become wealthy, you need to begin learning more and increase your understanding and ability. This will lead you down one of two paths, depending on your ultimate goals...

* Portfolio income

* Passive income

1 Response to "Earned Income"

Iklan Atas Artikel

Iklan Tengah Artikel 1

Iklan Tengah Artikel 2

Iklan Bawah Artikel