Over the past four months I’ve gained a newfound understanding of self-worth.
I used to break down my money into two categories; salary and savings. The process was very simple. To make an income, I provided my time and skills in exchange for money. I would then keep a percentage of my bi-weekly paycheck for myself and put the rest of it into a savings account.
The truth is, that this is how you make good money. It’s not how you make great money.
The key to making more starts with a higher level understanding of wealth, and the two different ways we define income.
is active income. This is your full-time salaried or part-time hourly job. It also umbrellas side hustles like freelance work, Uber driving, Fiverr gigs, etc. It is the process of trading your time for money.
is passive income. These are earnings that may not require as much hands on work, including investing, real estate, e-commerce, royalties, etc. This allows you to have some financial flexibility outside of your 9–5, without having to necessarily be present to reap the benefits.
The Secret To Financial Success Is..
understanding how to build up multiple revenue streams combining both active and passive income.
A lot of people settle on their career salary, or sit on it for a decade before making a move. If your ambition is to be average, then that mindset is fine. But to be in the top tier of wealth, you need to start figuring out different ways to make money simultaneously.
This process won’t happen overnight. I’m sure most people reading this don’t have more than a few income streams yet.
If you do, fantastic. You’re already on the path to a wealthier future.
If not, don’t panic.
Even if you only have one that’s fine. Your goal should be to get the ball rolling on researching the opportunities that exist out there to make more money.
Start with something easy like investing a small percentage of your paycheck. Over time you can build out different income streams until your side earnings are matching your salary. Then push for more.