Lets talk about Income

What is Income

Income is the consumption and savings opportunity gained by an entity within a specified time frame, that is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings received... in a given period of time." Types of Income

• Active Income – The most common form of income is the money you earned by working for someone. In return, your employer provide you with money in the form of a wage or a salary, plus benefits.

• Passive Income – Money earned from sources other than your job. This could be money you earned from blogging, selling stuff on eBay, investment income, online business revenue, commission and etc. that your not trading time just to earn money.

Compare your Career Versus Alternative Income

I’d like to give stressed and touch on the question of career versus alternative income. I believe that  building extra streams of income should be the career of choice for the majority of us today.

Here are several advantages of having multiple income streams:

• If you lose your job, your income is lowered as opposed to disappeared.
• The higher up you are in your career, the harder it is to find an equivalent paying job.
• Additional income streams will help you reach your financial goals faster.
• Additional income streams give you a taste of financial freedom — after all, financial freedom is basically when you no longer need your job to cover your living expenses.
• Multiple income streams give you greater flexibility and leverage. You’re in a much more powerful position when you know that you are not 100% dependent on your job to make do.

The Time And Effort To Build Alternative Income Streams

 There are two points I would like to make with regard to this:

1. Building your primary income (i.e., your job/career) took a tremendous amount of time, effort, and money as well. Many jobs require a college degree and some requires even more education and training. I think 4 years of college is a lot of time, effort, and money! If I have to spend 3 hours a day for a year to build an income stream that could produce 10k-15k a month, I don’t think that’s too bad.
2. Once you set up an income stream (particularly a passive one) you could shift your focus to other streams and it continues to produce. For example, if I have 100,000Php in a high yield savings account earning 1-3% per year, I will continue to receive 1k to 3K peso a year even if I stop paying attention to that income stream. On the other hand, if you stop working, your paycheck will also stop.

7 Key Factors to Build Successful Income Streams

If you are interested in building income streams, this article is the place to start. Building multiple income streams is simple, but not easy. Based on my own research and some part of it with my experience, I feel that these are the seven key success factors:

1. Passion — Do what you love.
2. Expertise – Focus on what you are good at.
3. Patience — Don’t expect to see the desired results right away.
4. Commitment – Some ideas take more effort than others.
5. Persistence — Not everything you try will be successful, just keep trying.
6. Diversify — Don’t stop at the first thing that works, keep looking for more and different ways.
7. Little by little — Trickle of money from many streams will turn into a decent amount of money.

Becoming a Part-Time Entrepreneur

As we established above, it’s unwise to rely on one source of income and bet the farm on your career. As such, a good option is to become a part-time entrepreneur. Being a part-time entrepreneur allows you to maintain your regular income plus benefits, while gives you the opportunity to explore and expand your alternative income streams. As a part-time entrepreneur, you can afford to make mistakes and take on more risks. You can also go at your own pace to develop your income stream.

Imagine yourself that you are earning a part time income aside from your regular income from your job . The key is we need to develop or create a second source of income aside from montly salary from being an employee.



Sharing Access To Success,
Phil