In the advanced technological world we live in today, there have been more news ways to make income than ever before. For example, just twenty years ago people were just hearing about the internet, but no one had any idea that it would become the machine that it is today, let alone an economical hub, binding the world together. If you go just twenty years before that, no one knew the potential that computers had and the impact they would have on our everyday lives.
In today’s world, there are more ways to generate income and it’s even easier than before. Everything from services to products have been affected. That’s the good news for us: You can make money doing virtually anything. That’s what this website is dedicated to and that’s the information you can find on it’s pages.
There are a few things to understand as you navigate the site about terms and methods of generating income.
Earning Income with a Job
For as long as you and I have been around, the most common and probably most standard way of making an income is through a means of trading one’s time and efforts for a set amount of money. This is called a job. If you are salary, you are paid a flat amount each pay period for your flat amount of time that you are present. If you are paid hourly, you get a fixed amount of money for each hour you spend at work. This is the easiest and yet least effective way to make money.
Do you see the problem and dilemma with this? You have a fixed amount of time in a day and a fixed number of days you can work. That means your earning potential is capped by the amount of time you can dedicate to the job. A job, though a good starting point, has by far, the worst earning potential.
Make Money Through Commissions
Moving up in the world, you can expand your earning potential by adding commissions into the mix. A typical sales person earns commissions as their payment for their efforts. Commissions are getting a portion of the proceeds of a sale (for example 20% of the sale price for a home security system). For a good salesperson, this can be quite lucrative, because with commissions, your earning potential is no longer capped. If you can develop systems and procedures that don’t fail and leverage your time better, you have greater earning potential. Unfortunately, if you aren’t good at systems or sales, you could have whole months where you put in 60 hours a week and don’t get paid at all.
Though the earning potential is not capped, again, you must exert time and effort in order to make a sale and earn your income. Since the amount of time you possess is limited, there is a limit to your income, it’s just not as concrete as a job.
If you want a good idea about one way of making commissions, see our post about Making Money with Affiliate Marketing.
Make Money Without Spending Time
So far we’ve see ways to make money that require an investment of time. At this point you may be saying something like “yeah, okay, but I don’t know of a job in the world that pays you whether you work or not.” Well, my friend, you are wrong. There is such a thing… let me tell you about it:
Passive income. Passive income is money that comes to you, without any effort on your part. Could you imagine making money while on vacation at a job where you have unlimited vacation. No employer in their right mind would think that was a great deal, but there are things you can do now with little effort that could pay out for years to come. Passive income isn’t 100% free from your time, but it is a means of income that requires a time investment up front and then it pays out for years without any time on your part.
“What?” you say, “why doesn’t everyone do passive income then?” For a few simple reasons: They don’t know how, they are afraid of the risk, they are addicted to being paid for your time (See Rich Dad, Poor Dad by Robert Kiyosaki on our recommended reads page for a better understanding of that principle). Very few passive income strategies are guaranteed. Very few start paying out immediately. If you can delay your “reward” the benefits are amazing.
Here are a few examples of Passive Income that you are probably familiar with:
- Stock Dividends – payments from stocks you own
- 401k Interest – interest on your investments
- Rental income – rent paid to you from tennants of your real estate properties
- Multi-level Marketing (MLM) – Build a downline and let them do the work for you
- Build your own business, but let others do the work – Hire employees to do the work, make the profits of the business
If you’ve ever dreamed of sitting on the beaches of Hawaii for an endless amount of time, not working for a living or even just having some side income that doesn’t eat up your free time, then passive income is for you. Check out our Passive Income Strategies category for list of options.
Don’t Quit Your Day Job… Yet
So, if this page has gotten you all revved up and excited to go out and quit your job which is limiting your potential, DON’T. As I eluded to in the last section, passive income doesn’t happen immediately, it doesn’t happen overnight either. Take some time, investigate some options and decide what is right for you. Then, once you have it narrowed down to one or two strategies you think you can get excited about, create a schedule and plan to build those up. Set aside some time each week to invest a little time into each strategy.
THEN, once your passive income consistently exceeds your monthly income requirements, you can choose to quit. That means, do yourself a favor and don’t quit until you are certain that the passive income will pay your bills every month. Once you are sure of that, Quit Your Job.