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