Great to have you here as this concludes the True Financial Freedom series! I’m confident you will find this interesting, valuable, and a seed that will be planted and grow into something amazing! Pay close attention, and ask questions:
There are 3 Types on Income…
Most people have to work extra time or put money aside for trips, vacations, and special events. What I want to share with you is how to have True Financial Freedom by having multiple streams of income so you don’t have to worry about where the money is coming from. Because of the info I’m sharing below, I was able to do the things in the video above. I was able spend time with my family, not worry about asking for time off, and not worry about where the next paycheck is coming from.
Did you know people who have multiple streams of income have more time available to travel, give back, spend time with friends/family, follow their passions, and experience life to the absolute fullest?
I want you to start with this question….Where is your money coming from?
Do you work at a job for your paychecks? Do you have assets that build interest? What about a business that puts money into your pocket every Friday?
Once you really look at where your money is coming from, and going, you will be able to make adjustments, if needed, so you can live a life free from financial worry.
There are really 3 Types of Income Available for all of us. They are:
1. Earned/Active Income
2. Portfolio Income
3. Residual/Passive Income
My mentors and other successful people before me have learned to utilize all 3 types of income to help them retire early and have that True Freedom. Because they leveraged these, they all have more choices, options, and happiness in their lives. What I’ve learned from them is this:
Get your finances under control, with multiple streams of income as early as possible, so you can spend the rest of your life on the things you love.
Now I want this post to be simple and brief so it makes sense, so here are the basics. After you read it you can contact me and I’ll give you deeper details and even guide you with plans I worked with my mentors, all for free.
Earned/Active Income: This is the income that we obtain from working for someone or a company. Earned income is based on our time, effort and skill. This is the type of income from active work (salary or hourly employment). Some activities that provide us earned income include:
- Having a job
- Retail Sales (one time sales)
- Providing consultancy services
The defect with Earned Income is that it’s limited. It’s the effort of our time and skills for a one-time payment. If we stop working, we stop earning money.
Portfolio Income: This can be income we make from our investments (Real Estate, etc) by selling it at a higher price than we paid for it. We’re making our money work for us. Some examples of investments that can generate portfolio income are:
- Buying, flipping and renting out real estate properties
- Buying and selling stocks (bonds, mutual funds, etc). I use a personal broker to help me in this aspect.
- Buying and selling items that are considered “collectible.” You can buy old items that have the potential to appreciate in value, then you can sell it.Portfolio income is sometimes considered a greater source of income than Earned because it is our money that is working harder for us, and we’re not trading as much of our time anymore.*Be sure to leverage professionals and your resources so you can do this effectively.
Our financial IQ is so important because it can make us broke or rich! All successful people invest in themselves by reading books, going to seminars, and studying other successful people so they can gain more knowledge and experience.
Residual/Passive Income: This is my absolute FAVORITE! This is what allows me to leave town whenever I want.
Residual income refers to income that’s being derived from the businesses and assets that we have accumulated/built. It’s knowing that we will continue to receive paychecks over and over for the initial work we did starting out. Some examples of businesses that generate passive income include:
- Rental properties (apartments, condominiums, etc). More money coming in than going out.
- Royalties (books, patents, etc.)
- One of my absolute favorites: Network Marketing Companies. There are many out there, be sure to do your research. Ask me for my checklist when you’re choosing a network marketing company.
The reason this is my favorite type of income is because it gives us the time and money freedom to live our dream life. It requires little effort, and you can choose to “retire” early because the money keeps coming in week-after-week, month-after-month, and year-after-year.
- You have more control over your income. It’s your business and you have influence over how you run it,
- You get to work for yourself instead of taking orders from someone else.
- You will be surprised at the potential tax privileges. Recently, professionals are showing that Americans are paying 3 to 9 Thousand dollars TOO much in taxes each year. Why not learn how you can spend your income on yourself first before the tax is deducted. For other two types of income, tax is deducted first before you can spend the money.
* I am not a tax professional and I consult with one. Be sure to do the same yourself.
So, as you can see, there are more options available for all of us. We don’t have to follow the same road, go to work, save money, by a house, get in debt and hopefully retire. That’s the scenario for a lot of people…sometimes even in a different order.
The point is this…if you want to live a life free from financial stress, free from job handcuffs, free from someone else determining how much you make, then you need to look at adding other types of income. How can you ever have enough free time and money when you’re working for someone else?
It’s a choice you must make. Let me know if I can help!
My passion is bringing health and freedom into people’s lives. If you know someone I can bless, please help make the introduction. Thanks!
Health and Freedom Expert