Knowing the three types of income will make tremendous difference as you journey into the world of money and financial freedom. It doesn’t matter if you are an employee, a business man or a student. Financial education is what you need as long as freedom and fulfilment is a dream you crave for.
The difference between the rich and the poor has never been clearly defined than this. Financial knowledge is what makes you who you are in the word of money. Knowledge is indeed power and with power comes the power to use money and make it work for you, not the other way around.
In this article, i’m going to disclose the three types of income that is going to change your view about everything, everything you think you know already. Knowing this gives you the power to create your own wealth. I don’t know why but i can’t help but fish out the ultimate secrets of wealth. This is something the rich will pay, to keep it hidden from you.
THE THREE TYPES OF INCOME
1. ACTIVE/ORDINARY INCOME
2. PORTFOLIO INCOME
3. PASSIVE INCOME.
1. ACTIVE/ORDINARY INCOME
When you work throughout the month and get handed a paycheck. It’s called ordinary income. If after the end of the day’s business and you come home with some little or huge profit. It’s also ordinary income. The more you work hard and earn more, the more you keep pushing yourself into high tax brackets. The more your salary rises, the more taxes rise with it.
When parents say, ‘Go to school, graduate with good grade and get a high paying job’ They are asking you to start working for ordinary income which isn’t too bad, but modern slavery. People who relies so much on their ordinary income are known by the amount of needs begging to be satisfied. No matter how hard they work, no matter how high they climb the ladder of promotion, they still can’t help but keep working harder, striving to maintain their status quo. Those in this class are referred to as the poor in our society and their problem is ignorance. To them, the only source of income is their job.
2. PORTFOLIO INCOME
This is another form of income, commonly used by the middle class who still dwell in the delusion that they are investors. Most of them are successful graduates who came out with excellent grades. But they still lag behind when it comes to the language of the real world. This investment is usually called paper investment or assets cause it’s not concrete. This is the returns that comes from investing in mutual funds, stock market, treasure bonds, Real Estate Investment Trust (REIT) etc.. The advantages of being a real investor isn’t usually accorded to them cause they are living in a delusion. Instead of investing, they keep selling off their capital for more capital gains. They believe in; buy the chicken and sell it at a higher price. Instead of buying the chicken and selling the eggs like real entrepreneurs do.
3. PASSIVE INCOME
This is where real entrepreneurs or capitalist resides. This type of income refers to money that comes from investments like real estates and other many gold mines. individuals in this class pay 0% tax and yet, are the wealthiest in our country. When taxes are raised, they are not really affected cause they are working for the government. You know how they are working for the government? They help the government build houses for the homeless through their real estate investments. They help the government create jobs and by doing this, the government offer tax incentives.
When we cry, ‘tax the rich‘ The rich aren’t really been taxed, we are merely taxing the poor, those individuals who depend on their ordinary income, the highest taxed income in the world of money.
HOW WOULD THIS INFORMATION MAKE YOU RICH?
Knowing the three types of income will help you determine which path to take in life. Do you want to walk the path of the poor, middle or rich? The options are yours to choose from. This article will help you to understand the kind of income you’re working for and what you need to do to avoid this nightmare of financial crisis.
If you have been running the rat race, a race that never ends by being in the class of those that work for ordinary income, this article will help unveil the veil and urge you into looking beyond. Everybody must not own a business, but if you want to be rich, then you need to start working for passive income cause that’s what rocks in the real world of money.
The reason the gap between the rich and the poor is wider than the River Niger is because the rich, the real entrepreneurs don’t work for money. They chill on long vacation as their assets springs forth millions of naira everyday, without paying taxes. While the poor on the other hand work throughout the week and yet, pay over 40% of their income as taxes.
The world will live in is a game of chess, it’s a game of strategy, a game where the smart mind wins. Why work for the paper money when you can print your own money? Why work for money when it can work for you? I consider myself rich cause unlike my contemporaries, I don’t work. In fact, I’m lazy and prefer to write throughout the day, doing something I love and yet, i’m financially free than those who work like Jackie. Financial education is what you need to be rich, not money.
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