Most people know only one type of income and they miss out opportunities of a lifetime. It would be good to know about them and to be aware which is more effective. That way, your efforts do not go to waste but will be meaningful.
TWO TYPES OF INCOME
1. Active Income
This income requires physical effort to earn money. Every time you earn this type of income it means YOU WORK FOR MONEY.
Examples would be working as an employee or owning a small business. You need to be physically present to earn. Most people have this type of income.
2. Passive Income (Inactive Income)
Only a few people have this type of income. If you have this it means MONEY WORKS FOR YOU.
Examples would be invesing in stocks, real estate or owning a big business.
Most rich people teach their children to have both types of income. They may start with the first one then have both. When some of them retire, they only have the second one. Some would continue to have both but more on the second.
I have friends who were raised by businessmen and are aware of the two types of income since childhood. While they go to school, they know which type of income they make sure to have. On the other hand, I also have friends who were raised by employees just like me. Some of them are aware but most do not. I am lucky my parents do invest. Most of us go to school and make sure to have active income.
Now you know about the two types of income. This will serve as a guide on how you will spend your time and effort so you get the type of income you want.
Take action by talking to the person who shared this to you.
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