When it comes to earning a living, there are so many different options, but if you want to be really wealthy, as in having lots of spare dosh, what’s the best way to go about it? For a more in depth guide, check out our wealth guide, here.
We’re keeping the discussion limited to income options in this post, but our wealth guide talks about dealing with expenditure as well.
#1 LINEAR income
This is the option of providing value once, and getting paid once for it. It’s the route the majority of people go down, trading time for money, as in working for a salary, or a fee, if you’re a freelancer. This is considered the least expandable, because there is a limit to the number of hours you can work and the income you can make. Sure you can, if you’re say, a sports star earn incredible income from your work, but it’s still limited to some extent. Many sports stars earn extra income from merchandising or other deals that take advantage of their celebrity.
#2 PASSIVE income
Create or buy assets or provide value once, and get income from it over and over again. This could be achieved from buying stocks and shares, and getting dividend payments year after year, or royalties for say music or art that you own, or licencing of intellectual property that’s yours. If you’re thinking of charging for say a video course, you film it once, and get paid over and over again for it, if it’s considered valuable enough.
Some other examples of recurring income
- Affiliate sales
- Property income (rent) or profit made from buying and selling
- Marketing activities that attract paying customers
- Royalties from intellectual property (art, photos, ideas, writing, music)
- Licencing fees (ideas, inventions, IP)
- E-books sales
- Book sales
- Pension income
- Stocks and shares income
- online courses (videos, e-books and email automated)vert
- Peer to peer lending
- Rent out a room in your house (Airbnb style, or to a student, or lodger)
- Lead generation website – supplying leads to local businesses
- Online store selling products that can be drop shipped
- Youtube videos that are popular and have advert placements on them
- Pay Per Click adverts on website
- Property renting out advertising space (car, building, fence)
#3 RECURRING income
Recurring income comes about by providing ongoing value or owning assets that you get regular payments for. This would include things like memberships or subscriptions for magazines or websites that you own, or from rent, if you’re a landlord.
#4 LEVERAGED income
Last but not least is leveraged income, which involves making income from other peoples resources, such as their money, time, effort, assets, skills, or popularity. You can do this if you own a business and employ people for instance, you get them to use their skills to make you money. You can also leverage other people’s resources via partnerships or joint ventures.
Other examples of leveraged income include
- Owning a franchised business
- Network marketing (avoid these)
- Being a talent agent
- Owning a freelancer service website where you earn a commission
So there you have it, I’ve tried to keep this post as short and concise as possible, hope you got some value out of it.
