Start as an entrepreneur #2
We can start talking about types of income without even know what an income. An income is money that is earned from doing work or received from investments, basically when ever money gets in your pockets it's consider an income.
Now that we know what an income let's talk about the different types of income, how to generate them and which will be the best suited for an entrepreneur.
I - Active income
This is your usual 9-5( 9 am to 5 pm) job schema. To get money you have to trade your skills and time. if you don't work or don't has any particular skills you don't get money. in this case you maybe are working for a company or for some particular person so your have to follow their rules like be here or there at this or that time, dress like this or like that do this do that and all those rules are the main reason why peoples want to be more independent and have more free which led them to start entrepreneurship. A diploma is necessary for high income jobs, the more you are specialize in a certain field the more you are getting paid and appreciate which the opposite from entrepreneurship where you have to know a little about many stuff. there are skills that are more worthy (financial skills, medical skills, sports skills...etc) than others (plumbing skills , teaching skills...etc). You have to work all your life to provide for you, your family and your old days so you don't have much time or energy left.
But active income can be a great way to start generating passive income which is our next type of income
II - Passive income
You ever wonder why rich people only keep getting rich ? that's how they do it
yeah yeah i know i am super generous(you can thank me later)
Alright passive income is money that is make regardless of whether or not there is incremental work been done. An exemple is let's say you own a real estate property that you
put for rent, that property will consistently bring you money regardless of if you work or not. That property is call an asset an the money it brings you is what we call a passive income.
An entrepreneur will focus to build as much passive income as possible.
the avantages of passive income are almost everything you can imagine you get paid doing nothing or almost nothing so you have time to do what ever you want to do, you want to travel go ahead, you want to sleep for a week no body will call you to ask why you're not behind your desk
That sounds good but how to build it ? you will ask me
build something or invest in something.
Facebook, google, apple all those big brands were build by peoples who had a vision and went all out for it. if you have a vision then go for it innovate and give us the next big thing but if you don't have a vision like most of the people then invest like Warren Buffet or Mark Cuban or even me. there are a lot of thing out there that you can invest in (real estate, stocks, bonds...etc), the motto is invest in what to the most comfortable with in other terms invest in what you know.
Money can be get in many different ways it's up to you to choose how doyou want to earn yours