There are two types of income in this world: Active income and Passive income.
Active income is the income which you have to be physically there to earn. (Like your job) You have to BE there actively to do the works in order to get paid. In essence, this is basically trading your time for money.
Passive income is income you earn without having you to be physically there to earn it. Like owning a business, stocks which pay dividends, or intellectual property which you earn royalties from. You don’t have to actually be there physically doing the work to make the money. In fact your business can continue to run and make you profits while you’re on holiday, your stocks will still pay you your dividends and you’ll still receive your royalties.
I’m sure you can immediately see what type of income streams you want to create and focus on! However, most people out there only have one source of active income – your job, which is risky. Because if at any point of time you lose your one and only source of income, you are in big trouble. Especially if you don’t have any substantial savings to tide you over until you find a new job or till you create a passive income stream.
You cannot rely on your job or just one source of income and expect to be financially free! In fact, you can only have one or at most two sources of active income (for example, a day job and a night job) simply because you don’t have the time to do anymore! And that’s why you must start focusing on creating multiple passive income streams.
Receiving active income is fine, but your primary aim must be to create passive income streams (your assets) as soon as possible! Learn more about escaping the rat race here.
Watch the video below for the story of “The Parable of The Pipeline” by the bestselling author, Burke Hedges that illustrates perfectly the two types of income. You will instantly see the importance of building multiple passive income streams.
So, start building your pipeline that will constantly supply you water; start building your Vemma network business that will create you a passive income stream for your own financial future!
Join and work together with me and our team. Talk soon!
To Your Success,
Nicole Fong
