Don't Let Earned Wages Break Your Back
The new rules of money that say, find one path and follow it until successful.
3 types of income discussed are Earned, Portfolio, and Passive Income.
Robert Kiyosaki suggests that people in America are working hard for earned income.
The problem with earned income, you’re generally paying a much higher tax percentage annually, than if you were to be making money via a business, that was taking advantage of corporate tax breaks.
Another issue that arrives with earned wages is, you have to work harder and more HOURS, in order to make more money. Which means less time with your family, less time for your passions, and potentially a life unfulfilled due to working your entire life.
As Warren Buffet says, it’s a shame that his secretary pays a higher percentage of taxes than he does. He is a billionaire after all. But this is essentially how a lot of the Rich Get Richer and The Poor Get Poorer, according to Kiyosaki.
Buy a house for 100k…sell it for 200k…
A capital gains type of event, and one example of portfolio income.
Income that creates assets without you having to leverage more hours of work.
Most people work hard for earned income.
Nothing wrong with that.
It is difficult to create wealth,
when it is based on the number of hours or salary you are earning yourself.
Most of us would benefit from creating opportunities for ourselves and our families, that wasn’t centered around earned wages.
Do what you have to now via earned wages, but think about ways you can start to create wealth for you and your family in 2018 via portfolio or passive income.
It takes the same amount of effort and work, day in and day out (actually more), but the pay off in the long run is worth it.