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Stop Exchanging Time for Money

Most people exchange their time forwhen exchanging time for money. The
money. Their entire compensationreason is simple. There just is not
package is determined by the number ofenough hours in a week to work to make
hours that they work in a given week.it profitable long term. Eventually,
Typically, an hourly wage is set whichthere is a cap on one's earning
is multiplied by the total hours workedpotential due to the time limitation.
during that time period. The standardCouple this with the fact that taxes
in this country is 40 hours withtake a greater percentage the more that
overtime accumulated after that. One'sis earned and one quickly realizes that
complete paycheck is contingent uponit is a fruitless proposition.
them showing up for work. Miss a day ofThe key is in the concept of passive
work and there is no pay earned withoutincome. Basically, passive income is
sick time.money acquired without you "directly"
Another common pay plan is a salariedworking for it. It is income that is
position. This is similar to the hourlynot an exchange for time. If work is
except the pay rate is the same eachrequired, it is done one time with the
week regardless of the number of hoursmoney flowing in multiple times.
worked. Overtime is usually notThere are two forms of passive income:
available in this scenario.income derived from business and income
Unfortunately, most people end upderived from investments. Business
working more that the normal 40 hoursincome is the money that one receives
under this plan. Companies put sowithout actually needing to work in the
much pressure on employees to increasebusiness. One acquires a business that
production that the time spent workingis either run by someone else or is self
seems to lengthen with each passingsufficient. The profits generated are
year.taken out by the owner thus yielding
This is the common mindset that ispassive income.
instilled in all of us growing up. WeIncome derived from investments is
are taught the we are to do well inmaking money from money. Instead of you
school to get into a good college. Onceworking for money, it is putting your
there, high achievement is stressed somoney to work for you. depending upon
that we can get a good job with a decentthe investment, a rate of return is
salary. When we accomplish that, therealized which generates passive income.
pressure is to work hard so that we canExamples of this are dividends from
advance to higher ranks within thestocks, appreciation in real estate,
organization with an associated increaseinterest on savings, etc...
in pay. Finally, we can retire after aThe wonderful aspect of this type of
productive career and drift off into ourincome is that the money is created
golden years.regardless of one's efforts. If you
Unfortunately, in this era, this conceptdon't show up for work, the income still
is not realistic. Although theexists. You will earn the same while at
educational system still prepares us towork as you would sitting on the beach.
get a job, the lifetime employment withIn addition, this allows one to increase
the same company is bygone. Peopletheir overall efforts. If your money is
typically work for numerous companiesworking while you are focusing on
during their careers. Massive layoffssomething else, you are, in effect, paid
are well documented. Loyalty eithertwice for your time. It is easy to see
from the company or the employee ishow it is possible to create massive
almost non-existent. Oftentimes, peoplewealth under this scenario.
are caught in financial hardship due toFocus your attention on creating passive
unexpected changes in circumstances.streams of income. It holds the key to
How does one get ahead? It almostall financial freedom.
impossible to attain financial abundance



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