| Most people exchange their time for money. | | | | time for money. The reason is simple. There |
| Their entire compensation package is | | | | just is not enough hours in a week to work to |
| determined by the number of hours that they | | | | make it profitable long term. Eventually, |
| work in a given week. Typically, an hourly | | | | there is a cap on one's earning potential due |
| wage is set which is multiplied by the total | | | | to the time limitation. Couple this with the |
| hours worked during that time period. The | | | | fact that taxes take a greater percentage the |
| standard in this country is 40 hours with | | | | more that is earned and one quickly realizes |
| overtime accumulated after that. One's | | | | that it is a fruitless proposition. |
| complete paycheck is contingent upon them | | | | |
| showing up for work. Miss a day of work and | | | | The key is in the concept of passive income. |
| there is no pay earned without sick time. | | | | Basically, passive income is money acquired |
| | | | without you "directly" working for it. It is |
| Another common pay plan is a salaried | | | | income that is not an exchange for time. If |
| position. This is similar to the hourly | | | | work is required, it is done one time with |
| except the pay rate is the same each week | | | | the money flowing in multiple times. |
| regardless of the number of hours worked. | | | | |
| Overtime is usually not available in this | | | | There are two forms of passive income: income |
| scenario. Unfortunately, most people end up | | | | derived from business and income derived from |
| working more that the normal 40 hours under | | | | investments. Business income is the money |
| this plan. Companies put so much | | | | that one receives without actually needing to |
| pressure on employees to increase production | | | | work in the business. One acquires a |
| that the time spent working seems to lengthen | | | | business that is either run by someone else |
| with each passing year. | | | | or is self sufficient. The profits generated |
| | | | are taken out by the owner thus yielding |
| This is the common mindset that is instilled | | | | passive income. |
| in all of us growing up. We are taught the | | | | |
| we are to do well in school to get into a | | | | Income derived from investments is making |
| good college. Once there, high achievement | | | | money from money. Instead of you working for |
| is stressed so that we can get a good job | | | | money, it is putting your money to work for |
| with a decent salary. When we accomplish | | | | you. depending upon the investment, a rate |
| that, the pressure is to work hard so that we | | | | of return is realized which generates passive |
| can advance to higher ranks within the | | | | income. Examples of this are dividends from |
| organization with an associated increase in | | | | stocks, appreciation in real estate, interest |
| pay. Finally, we can retire after a | | | | on savings, etc... |
| productive career and drift off into our | | | | |
| golden years. | | | | The wonderful aspect of this type of income |
| | | | is that the money is created regardless of |
| Unfortunately, in this era, this concept is | | | | one's efforts. If you don't show up for |
| not realistic. Although the educational | | | | work, the income still exists. You will earn |
| system still prepares us to get a job, the | | | | the same while at work as you would sitting |
| lifetime employment with the same company is | | | | on the beach. In addition, this allows one |
| bygone. People typically work for numerous | | | | to increase their overall efforts. If your |
| companies during their careers. Massive | | | | money is working while you are focusing on |
| layoffs are well documented. Loyalty either | | | | something else, you are, in effect, paid |
| from the company or the employee is almost | | | | twice for your time. It is easy to see how |
| non-existent. Oftentimes, people are caught | | | | it is possible to create massive wealth under |
| in financial hardship due to unexpected | | | | this scenario. |
| changes in circumstances. | | | | |
| | | | Focus your attention on creating passive |
| How does one get ahead? It almost impossible | | | | streams of income. It holds the key to all |
| to attain financial abundance when exchanging | | | | financial freedom. |