Earned Income Stream VS 8 Other Income Streams
When studying investing – there are 8 different types of income streams.
Studying the wealthiest people in the world and understanding how they make their money, it’s apparent that they use at least 7 of the income streams with some using all 8.
So, building wealth is about bringing in as many of income streams as possible.
Today, we look at Earned Income.
Earned Income comes from 2 sources. A job or owning your own company.
A job is where someone is employed for their skills and knowledge. They are paid a wage or salary as compensation for the hours they spend working on the job.
Another type of Earned Income, is when someone owns a company and becomes an employee of their own company. They receive a salary from their own business.
It is possible to build substantial wealth using either type of Earned Income.
The only difference is, a person who is an employee has to learn different ways to manage their income. The aim is to manage income and expenditure so there is always some money available for creating the other types of income streams.
The business owner has more ways to generate income and make more money available for investing. Their business is one of the 4 types of assets for investors to hold. The 4 assets are business, property, digital investments, and commodities.
At the end of the day, the employee with a job simply has a job that can be taken away at any time.
The Business Owner has an investment asset that can be grown to generate greater capital wealth and more income.
The great thing about being a business owner is more companies can be added to the business portfolio. Richard Branson has over 400 companies. Jeff Bezos has over 80 companies. This ensures continued growth.
An employee only has so many hours per day that can be traded to increase their income. Restricting the amount that can be earned.
As part of the process of deciding how to build wealth take a look at earned income and put a strategy in place to ensure continued growth and an ever-growing earned income.
Zero to Millionaire Building the Foundation teaches You how to build Multiple Income Streams.
By Karen Newton