Active income

Posted Mar 03, 2009 by tren123 / comments 0 comments / Print / Font Size Decrease font size Increase font size

there are three types of incomes that one can make. 90% of Americans concentrate there entire lives on making one and I explain this one kind of income here.

Like I said in my early article “The Endless Cycle”, this is where about 90% of all Americans make their money. Active income can also be called earned income, but it does not matter to me what it’s called, it all means the same… working for money. So when you make earned income/active income you work for money instead of having it work for you. It means you trade your time for money, or you give your time to your employer for money. So when you work for money, in anyway you make active income. So how do you know for sure if you make active income? Well ask yourself this question. If you stop working for money right now and stop everything, will you still make money? If the answer is no, you are no different than the 90% of all Americans, and you if the answer is no you are definitely making active income not passive income (which I talk about in another article). As a matter of fact active income is the exact opposite of passive income. This is why the rich stay rich, because they have passive income, which is why they don’t work for money, but let money work for them. (I cover this more in another article) Active income is people working for the rich and getting paid pennies on what they really deserve. I believe this whole heartedly and that is why I don’t want a job and that is why people making active income never get rich. They work all there lives for the rich through jobs, then they pay the rich through there bills and loans and mortgages. Making active income is the thing that “The Endless Cycle” revolves around, and without it there would be no “Endless Cycle” in the first place. (which I talk about “The Endless Cycle” in another article.) Again not to confuse you but I am not trying to make the rich look bad at all. If anything it’s just the opposite. What I am trying to say is as an employee you get paid pennies but, think about you owning the business your working for and being in your employer’s shoes then reality shifts a lot doesn’t it? I am saying that when you get into that 10% you can have a life that does not revolve around work and bills and you can be a part of the rich. So what I am really saying is that it is better to be the rich or become the rich, than it is to work for them and to prove my point I’ll say this. Being employed the government takes huge taxes away from you so when you get your active income check every month you will lose a cut to the government. However passive income is income that has better tax advantages and if your real good at receiving that magical income you wont have to pay any taxes at all!!! So much for being employed and working for the person that pays less in taxes than you! It’s not a bad thing in my opinion it’s just a matter of becoming rich and getting into the 10% that other Americans would be lucky to get into or even reach for that matter. And to do that you must not make active income but passive and lots of it. I often wonder why people try to get rich when they don’t have financial knowledge. They think that if they get tons of money that it would solve all their money problems and make them free. Which is not only not the case, but it’s the biggest load of crap anyone can ever think of. (I speak more of this in the article “Why I wouldn’t give a middle class or poor person a cent“) For example lets say a poor person or middle class person won the lottery of let’s say 3 million dollars. Of course they would be happy and maybe even jump out the window, but lets keep this real huh? So they win the lotto and what is the first thing they will do? SPEND IT!!! On houses, cars, boats, TVs, and any other thing that they could think up. Then before they know it, it’ll be all gone. Then they are back where they started, working for the rich and even more in debt from all the liabilities they bought. Which is my point the middle class and poor don’t know how to handle money that is why they are in debt and work so, so hard to survive. However I feel that it is not all there fault for they were taught to be poor and buy big house before they were financially prepared. Which beings me to my next point… a question. Do you know the difference between a poor person and a middle class person. The only difference is the middle class works hard to pay off there houses and cars and loans. While the poor can’t afford them yet. That is the ONLY difference. Why is that the only difference? Well it’s because they both are broke and they both work hard for the rich. Its just that the poor don’t have enough active income to buy the liability houses and cars and loans to give the rich more money. (more money than they already give them.) so you might ask yourself why the middle class and poor works so, so hard in order pay the rich? Well you might also ask yourself how the poor pay the rich? And how does the poor work for the rich. Well it is all linked to active income. To answer the first question though, it is because people in general love big houses and big cars and expensive doodads but the middle class can’t buy them so they take out loans and use credit cards and mortgage to get those things. Which is also the answer to question #2. Also middle class want these things now and they don’t have a sense of delayed gratification so they buy them at times where they can’t afford them and can’t afford to get them and they buy them using a form of O.P.M. called bad debt (which I talk about in another article and I talk about O.P.M. in “O.P.M. The Savior”.) so they grow poorer and poorer and work harder and harder trapping themselves in “ The Endless Cycle“. To the point where if they stop working for active income, their bills will eat them. Which is unfortunate but they have almost no one to blame but I can’t help but feel pity. So I’d recommend you avoid this because I will. Also if you have anything you wish to say to me, please do not hesitate to E-mail me at Trenzel123@yahoo.com. I will get back to you if I can. Also if you like this article please take the time to look through the others I made Via my profile page. Thank you for your interest and have a wonderful day.

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