Money and Finances
by Mark Courts on 10/18/15
Do you have what it takes to become a Millionaire? Most Young Black Millionaires Have at Least 7 Sources of Income and Revenue.
Unbeknownst to more people there a 4 different ways to earn income:
A. Employee (E), B. Self-Employed (S), C. Business Owner (B) and D. Investor (I)
Listed below are 7 different forms of income that you can generate income to improve your financial situation.
1. Earned Income (E) - Money that you earn by doing something for pay, trading time for money. For example: the money that you make in your job, the salary you get by working for someone else. Unfortunately, this form of income provides the employee with relatively little control; you trade time for pay, someone else withholds (state, local & federal) taxes, social security, etc. and gives you the remainder.
2. Profit (B) - Money that you earn by selling something for more than it costs you to make. For example: Businesses selling their goods at a profit, whether at the retail or wholesale level, as distributors or manufacturers. This method providers the entity more control with determining when you pay taxes, expenses, etc.
3. Interest (I) - Money you get as a result of lending your money to someone else to use, example, putting it in the bank, lending it to the government in the form of buying Treasury Bills etc. This is one of the best ways to earn income, unfortunately, many people are limited in their investment knowledge. Invest time time in learning more about stocks and the various investment vehicles.
4. Dividend Income (I) - Money that you get as a return on shares of a company you own. For example: the dividend that most companies announce at the year end. Typically you will have to own shares to get dividends. Some stocks pay out their dividends monthly, quarterly, bi-annually and annually. There are many stocks that are paying out great returns every quarter; take time to learn as you earn.
5. Rental Income (I) - Money that you get as a result of renting out an asset that you have. For example: This will be a house, or a building. This is another great way to earn income. Smart landlords keep up the value of their properties by taking the time place great tenants in their properties who help them with the upkeep.
6. Capital Gains (B or I) - Money that you get as a result of increase in value of an asset that you own. For example: when you buy shares at $10 and sell them at $11 - the $1 is capital gains, or if you buy your house for $200,000 and sell it for $220,000 the $20,000 is your capital gain.
7. Royalties (S or B) - Money you get as a result of letting someone use your products, ideas, or processes. Your original artwork, photographs, illustrations, designs, clothing and apparel, shoe designs licensed out - you receive royalty payments from others using your ideas and concepts. When others make revenue from your idea or brand, you get a percentage of what ever they earn. They are paying you for using your processes, your logo, and your brand or "name", etc.
However you choose to earn income, you increase you chances of improving your finances when you increase the number of ways that you earn income. In upcoming months, make it your goal to increase your income by increasing the number of ways that you earn.
Thanks to the Black Hedge Fund Group and the Cashflow Quadrant for concepts presented in this article.
