How much Money Do You need?
We all need:
- Money for today – Money to meet our needs for Today.
- Money for tomorrow – Money to meet our needs, tomorrow.
- Money for a lifetime – Money we can comfortably retire with. Money which could last us a lifetime, without returning to work (if we chose to).
We all need these three (3) types of money.
And there are four (4) ways you can generate these three (3) types of Monies or Income:
1. Traditional Income or Active Income:
Traditional Income is: Income which requires us to sacrifice our time, energy and presence to generate.
Most of us generate this type of income from a job – Working for someone else; and a few of us generate this type of income from having one of those businesses, which also demands our time, energy and presence, daily.
2. Time-Saving Income or Passive Income:
Time-Saving Income or Passive Income as it is more commonly known is: Money which you generate that doesn’t demand your time, energy or presence, daily. It saves you time, energy and presence.
In the initial stages it may require some of your time, energy and presence to set up, but after that, it has the capacity to bring you income without much work.
Some examples of passive income are:
a. When you put your money in the bank, Unit Trust or Credit Union, which gives you a certain percentage of interest on the money you deposited there.
The interest the financial institutions pay you is an example of Passive Income, which you earned or generated without work. Now you didn’t do work to accrue that interest – Someone else did: The Financial Institutions. Another example of Passive Income is:
b. People who purchase vehicles and have someone else use them as taxis. The driver brings in a standard amount of money for the owner of the vehicle, and keeps the balance for himself. Now the vehicle owner didn’t do any taxi-work – Someone else did it for them, yet they financially benefited from the output of that person’s work. This is also an example of: Passive Income.
Do you have an idea for generating Passive Income, now?
3. Recurring Income:
Recurring Income – Sometimes called: Residual Income is: Income which comes in like clockwork at a certain period of time – Whether daily, weekly, monthly, every quarter of the year or…..
Examples of recurring income are:
- Rent: Monthly or otherwise. Individuals who rent their place or equipment in exchange for money are consistently collecting: Recurring Income at the end of that time period without work. They are collecting money without having to expend their: Time or Energy.
Would you like to be a beneficiary of: Recurring Income?
Simply do the same.
4. Multiple Streams of Income:
When you acquire money from various sources, whether it is: Active, Passive or Residual Income – You are receiving multiple streams of income.
If you are receiving money from:
- Your 7 – 4 job (Active Income)
- Renting your property, machinery or equipment (Passive Income)
- Interest from your deposits at Financial Institutions (Passive Income)
- Selling products: On the job, to friends and family etc. (Active Income)
- Other sources
You are an example of someone who receives Multiple Streams of Income.
Once you are receiving income from more than two (2) sources – You are receiving Multiple Streams of Income.
To put this, another way, you can generate multiple streams of money by:
- Selling a Product/s –
Either your own or someone else’s. I have sold other peoples’ products, as well as, my own, and profited from it.
- Selling a Service/s –
Again, either your own or someone else’s.
I once sold insurance policies and other services for other companies, as well, and made commissions from these ventures, also.
My friend, do you know how many service-oriented organizations are waiting for you to sell their services for them and give you commissions for it?
- Selling our ideas –
Arthur Fry, who came up with the idea of the Post-it Note, sold that invention for a royalty of $1,000,000.00 per year. Each year, he has a check for one million dollars delivered right into his mailbox with his name on it.
How many ideas do you have, which you allow to die an instant death; without giving them a chance to make sales or generate royalty payments?
- Selling Information –
The information industry accounts for Billions of dollars in sales each year.
Every day people buy information. Every time you purchase a newspapers, a book, a teaching on CD, DVD, Video, Film, Downloadable Audios, a software program etc., you are buying information – Someone else’s information. Now nothing is wrong with that.
You do need to constantly invest in educating yourself in whatever field of interest you choose. I have personally spent thousands upon thousands of dollars purchasing other peoples’ products. But I have also made a lot from selling my own products.
My friend, do you know, you too, can produce your own information products?
Yes! Believe it or not – You have information that people would be willing to pay you money for, too. Refine it. Package it. Sell it, and wisely utilize the monies you make from it.
Let me leave you with a diagram, which would help you remember how much money you need; and where you can get this money from.
You need: MONEY FOR:
You need money for Today, Tomorrow and Everyday and there are only Four (4) Ways to Generate it: Active Income, Passive Income, Residual Income and Multiple Streams of Income.
It is said, ‘A picture is worth more than a thousand words’. It is my hope that the above diagram is worth the same.