Revenue

​Moving from employee or self-employed to a business owner or investor is a metamorphosis, a beautiful physical transformation.  It is a stunning display of a revolutionary mechanism at work.  

Revenue
By Pierre Mouchette | Bits-n-Pieces

Moving from employee or self-employed to a business owner or investor is a metamorphosis, a beautiful physical transformation.  It is a stunning display of a revolutionary mechanism at work.  It takes time and often requires a total shift in mindset and behavior.
Do you know what kind of income you are working for - most people think only of making money!  They do not realize that there are different kinds of money to work for.  For edification, there are three kinds of income:

• Ordinary earned income - a wage earned from a job.  It is the highest-taxed income, the most brutal way to build wealth due to high taxes, and you are trading time for money.  Your ability to earn is established by how long you can work.
  
  
• Portfolio income - is earnings derived from assets such as stocks, bonds, and mutual funds.  It is the second-highest taxed income and is difficult to build wealth due to low returns.
  
  
• Passive income - derived from real estate, royalties, distributions, and other sources.  This income has the lowest-taxed income, many tax benefits.  It is the most uncomplicated income to build wealth with, thanks to its combination of low taxes and potentially infinite returns.

Did you know that you can:

• Convert ordinary income into passive income - most people start their working career making regular income as an employee.  The path to building wealth starts with understanding that there are other types of income and then converting earned income into the different kinds of income as efficiently as possible.
  
  
• Be prepared - that is, be prepared with education, experience, and cash.  Focus on what you want to accomplish.   Plan and make a business plan, then plan some more.  The majority of this can be achieved through continual education, then application.
  
  
• Evaluate risk and reward - as you become a successful investor, you must learn to evaluate risk and reward.
  
  
• The investor is the asset or liability - most people are under the illusion that investing is risky.  The reality is that it is the investor who is risky.  The investor is always the asset or the liability.  To become a good investor, first invest in your education, plan, then start small.  As you learn and obtain experience, make more significant investments.