Stop Exchanging Time For Money

Stop Exchanging Time For Money



Stop Exchanging Time For Money
Most people exchange their time for money .​
Their entire compensation package is​ determined by the​ number of​ hours that they work in​ a​ given week .​
Typically,​ an​ hourly wage is​ set which is​ multiplied by the​ total hours worked during that time period .​
the​ standard in​ this country is​ 40 hours with overtime accumulated after that .​
One's complete paycheck is​ contingent upon them showing up for work .​
Miss a​ day of​ work and there is​ no pay earned without sick time.
Another common pay plan is​ a​ salaried position .​
This is​ similar to​ the​ hourly except the​ pay rate is​ the​ same each week regardless of​ the​ number of​ hours worked .​
Overtime is​ usually not available in​ this scenario .​
Unfortunately,​ most people end up working more that the​ normal 40 hours under this plan .​
Companies put so much pressure on​ employees to​ increase production that the​ time spent working seems to​ lengthen with each passing year.
This is​ the​ common mindset that is​ instilled in​ all of​ us growing up .​
we​ are taught the​ we​ are to​ do well in​ school to​ get into a​ good college .​
Once there,​ high achievement is​ stressed so that we​ can get a​ good job with a​ decent salary .​
When we​ accomplish that,​ the​ pressure is​ to​ work hard so that we​ can advance to​ higher ranks within the​ organization with an​ associated increase in​ pay .​
Finally,​ we​ can retire after a​ productive career and drift off into our golden years.
Unfortunately,​ in​ this era,​ this concept is​ not realistic .​
Although the​ educational system still prepares us to​ get a​ job,​ the​ lifetime employment with the​ same company is​ bygone .​
People typically work for numerous companies during their careers .​
Massive layoffs are well documented .​
Loyalty either from the​ company or​ the​ employee is​ almost non-existent .​
Oftentimes,​ people are caught in​ financial hardship due to​ unexpected changes in​ circumstances.
How does one get ahead? It almost impossible to​ attain financial abundance when exchanging time for money .​
the​ reason is​ simple .​
There just is​ not enough hours in​ a​ week to​ work to​ make it​ profitable long term .​
Eventually,​ there is​ a​ cap on​ one's earning potential due to​ the​ time limitation .​
Couple this with the​ fact that taxes take a​ greater percentage the​ more that is​ earned and one quickly realizes that it​ is​ a​ fruitless proposition .​

The key is​ in​ the​ concept of​ passive income .​
Basically,​ passive income is​ money acquired without you directly working for it .​
It is​ income that is​ not an​ exchange for time .​
If work is​ required,​ it​ is​ done one time with the​ money flowing in​ multiple times .​

There are two forms of​ passive income: income derived from business and income derived from investments .​
Business income is​ the​ money that one receives without actually needing to​ work in​ the​ business .​
One acquires a​ business that is​ either run by someone else or​ is​ self sufficient .​
the​ profits generated are taken out by the​ owner thus yielding passive income.
Income derived from investments is​ making money from money .​
Instead of​ you working for money,​ it​ is​ putting your money to​ work for you .​
depending upon the​ investment,​ a​ rate of​ return is​ realized which generates passive income .​
Examples of​ this are dividends from stocks,​ appreciation in​ real estate,​ interest on​ savings,​ etc.. .​

The wonderful aspect of​ this type of​ income is​ that the​ money is​ created regardless of​ one's efforts .​
If you don't show up for work,​ the​ income still exists .​
You will earn the​ same while at​ work as​ you would sitting on​ the​ beach .​
In addition,​ this allows one to​ increase their overall efforts .​
If your money is​ working while you are focusing on​ something else,​ you are,​ in​ effect,​ paid twice for your time .​
It is​ easy to​ see how it​ is​ possible to​ create massive wealth under this scenario.
Focus your attention on​ creating passive streams of​ income .​
It holds the​ key to​ all financial freedom.




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