«

»

May 08

Three Money Making Methods

Would you like to make money while you sleep? While there are hundreds of ways to make money, my millionaire mentor taught me that there are only three money making methods that aspiring millionaires need to understand. The three money making methods are:

  1. Active Income
  2. Passive Income
  3. Portfolio Income

Understanding how self-made millionaires make money is fundamental to achieving your financial freedom goals. When you understand all three money making methods you will know why the poor and middle economic sectors are so large.

96% of the U.S. population trades time for money working for a job. 3% make portfolio income by investing. Of course, investing can be risky and often takes either a large capital investment or decades to catapult to a million dollar portfolio. Surprisingly, only 1% of the U.S. population earns money by creating multiple income streams which can lead them to millionaire wealth in the shortest amount of time.

Active income is earned income that comes from a job or a business in which you are actively engaged.  It is derived from you trading time for dollars in the form of a job. But, having a job can become a double-edged sword.  On one hand you have the security of a paycheck and employee benefits but on the other hand, spending your primary earning years as an employee is what keeps most people from ultimate financial freedom.

Financial struggle is most often the result of limiting your earning potential by working for someone else for a lifetime.  Most employees end up with nothing to show for their 45 years of labor whereas the business owner they worked for made a profit from the labor of employees and retired with millionaire wealth.

The main reason the poor and middle economic groups are so big today is because they have relied on one source of active employment income and as a result are unable to build a solid financial foundation; indeed, building a financial foundation is challenging when your income barely covers monthly expenses. It seems like a never ending merry-go-round—you’d love the freedom of being a business owner but you have to work to keep money flowing in to pay for lifestyle consumption.  Eventually, we find ourselves trapped when all the stuff we purchased becomes worthless and we are forced to downsize at retirement.

Here’s a fact about self-made millionaires.  Most millionaires love what they do. They earn unlimited amounts of income fulfilling their life purpose and they never intend to retire.  Instead they live the good life of doing what they want when they want. They have the money to buy more stuff but they choose to put their money into what they need for everyday use and the rest goes into money-making assets; they are always thinking about ways to make more money.

Most millionaires make money 24 hours a day.  They typically have multiple passive income streams producing for them much like having oil wells that pump oil all day long. Oil wells pump while you sleep and while you’re on vacation.

Passive income is money you make that requires some set up time but afterwords minimal effort on your part to maintain.  The great thing about passive income from a fully automated website is once you set it up, money rolls in 24 hours a day…but that’s a post for another day.

Check out my free offers. (Click Here)  Be sure to sign-up to my email list at the bottom of this post or in the top right sidebar.  You’ll get FREE access to my monthly newsletter, ASPIRE! loaded with tips on how you can make money, save money and demolish debt.  Plus, my Free eBook, Riches Into Reality and my Free Report, 7 Steps to Financial Recovery After Loss.

 

Be Sociable, Share!

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>


*