Active Income Vs Passive Income - Why Passive Income? (A MUST read article)

A wealthy person is simply someone who has learned how to make money when they're not working - Robert Kiyosaki

TWO TYPES OF INCOME:

credits to: sherrystarnesonline.com/whats-the-difference-between-active-income-and-passive-or-residual-income/

Henry Hungry is applying for a job.

He walks into this nice office and meets a well-dressed fellow behind the desk. Henry smiles and asks him, "Sir, is there a job for me?"

The Man Says, "I'm actually looking for a general manager. you need to sign a contract for three years. Interested?

"Hmmm. Sorry for being upfront, but how much will I earn?" Henry Hungry asks.

The man says. "I'll let you choose your salary.

OPTION 1: is I pay you P30,000 a month for 36 months.
OPTION 2: is I pay you one centavo on the first month and I double it every month for 36 months."

credits to: angperanijuan.com

Henry starts calculating. "Option 2 is interesting. If I choose that, I earn one centavo on the first month, two cents on the second month, four cents on the third month, 8 cents on the fourth month, 16 cents on the fifth month, 32 cents on the sixth month... after 12 months of working with you, I would have received a total of... sheesh, P23!
Sir, I need the money badly. I choose Option 1 where I earn P30,000 flat each month. By the first year, I'd already have earned P360,000. And after three years, that would a total to P1 million. I definitely choose Option 1".

"Okay, if that's what you want." Then the man asks, by the way, if you choose option 2, do you know how much you'll earn by the end of three years?"

"I didn't finishing computing that option. It's too depressing."

The man Calculates in front of Henry hungry. "On the first month, you receive on centavo, on the second month, you receive two centavos..." He goes on and on, and Henry doesn't mind him too much. He's focused on the P1 million he'll be earning in three years. He feels pretty good about himself.

Finally, the man looks up and shows Henry Hungry the calculator. "In 36 months, you would have earned P680 million. You exchanged that for one million. I'm sorry, my friend, I can't take you as my General Manager. Your decision making skills are terrible."

Let me give you the figures...

There are only two types of income in this world:
Linear (Active) and Exponential (Passive)

Linear Income is like a piece of bread. You eat and its gone. After that, you have to look for another piece of bread.

Exponential income is like a seed. You can't eat it at first, but if you plant it and wait for a while, you can eat as much as you want to.
You have an infinite source of fruit if you keep on planting some of the seeds.

Many Filipinos today have only one income stream - their jobs - and jobs are linear income.

What is exponential income?

That's what a regular employee earns when he invests in mutual funds and stocks. (So you see everyone can earn exponential income, even employees).

That's what a store owner earn when he/she branches out, hires other store managers, or sells franchises of her store.

That's what a distributor earns when he distributes his goods to various stores.

That's what a NETWORKER earns when he/she builds a downline organization.

That's what a real state investor earns when she buys profitable rental property.

Exponential income - also called passive income - means earning for a very longtime from work you did only once at the very start.

Hey, income is income. Earn linear income when you can!
But invest your linear income so you can earn exponential income.

Because if you want to be wealthy, you need to find a way to earn exponential income.

If you wanna start a business or wanna add to your existing business and earn a passive income?

Just upvote and resteemed my post @codygee237 or add me on facebook https://www.facebook.com/jimz.pulvera

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