Making Money And The Different Types Of Incomes

Throughout my financial studies, I read in a book that in order to be wealthy and successful, all you need is 2 things: a plan and a plan of action. But even this is somewhat untrue because once you have reached success, how are you going to STAY successful? It is one thing to be successful and it is another to stay successful. I have created a philosophy that will create both in your life. But before I explain this concept, first you must understand that there are four types of income a person make:

1. The first type of income is called “Earned Income”.

2. The second type of income is called “Portfolio Income”.

3. The third type of income is called "Residual Income".

4. The fourth type of income is called "Passive Income".

Now, the bottom line is this, I used to say that “I love money” like “earned income” people but now I say “money loves me” because I have money working hard for me instead of me working hard for money (passive income). This is what “passive income” is as well as what becoming wealthy is all about! Notice I said the word “wealthy” and not “rich”. The name of the game is to become wealthy and not rich. An example of the main difference between being rich and being wealthy is this: Shaquille O'Neal is rich but the person who cut his check is wealthy!

This is one thing that I have learned through my studies of money and investing. True wealth comes from net worth and not big incomes, big debts, such as credit liabilities. This falls along in the line of what I had talked about earlier in regards to money bringing happiness. I feel as though the only way an individual can truly be happy with money is by having money work hard for them through some type of residual or passive income. Now when I’m talking about money bringing happiness, I’m strictly talking about it in the mental sense and how you should think about “money”. I’m NOT saying that it brings happiness throughout all aspects of life. All I’m saying is that if your going to make money, do it the most productive way possible and the best way is to let it work for you instead of you working for money.

Over the years, money has been working extremely hard for me generating numerous sources of residual and passive income streams that seems almost endless! It’s like I have a “turn-key system”. If you are not familiar with what we entrepreneurs call a “turn-key system”, it simply means when you have a business (no matter if it’s a product or service) that makes money for you nonstop, around the clock, 24/7, whether your there or not. Most passive and residual income earners are business owners and investors. Sometimes they are both as well.

To me, this is the true power of generating REAL wealth and making money! Some of the most effective ways that I have learned to make money and how you can get money to not only start loving you but finding you as well, you must first figure which investment vehicle is best for you. I strongly suggest and highly recommend that you consider investing in some kind of internet business just like this one if you haven’t already. I have NEVER seen such a business that can produce so much return off of so little minimal start up capital like the internet!!! I mean through having an internet business, it pays off long term dividends because you build equity in it over time. The "leveraging" effect of your website/websites is what can make it passive and residual income. The sooner you start to invest your money in the internet and technology (whether you have a lot or not), the better off you will be. Trust me!You NEED to get the manual!!!