Distinct sources of income


Hi, it’s good to come your way again on this platform. I have come to show you two ways you can earn but only through one of the channels you will achieve financial freedom if you can actively involve your entire being in the process. A lot has been spoken about these income sources and I want to add my voice to it. Remember, it is not a rocket science, it requires a deliberate effort. The two ways are Active Income and Passive Income.

Active income is an income you earn whenever you show up to work or do a job. That means if you do not show up you won’t get paid. Anything you do that requires your physical presence to earn is an active income.

Passive income is an income you earn even if or when you do not show up because you have a system in place that ensures the money keeps coming in on daily, weekly, monthly, quarterly or annual basis.

Anytime I make this presentation in a hall, classroom, church etc I ask people what will you do with your life and time if you earn enough passive income to take care of all your expenses? The answers I get are mind blowing, they are mind bugling. I get answers like I want to go round the world to fight malaria, some people want to build orphanages, some want to take the gospel round the world, somebody said he want to take the destitute off the streets, another said he want to go back to primary and secondary schools to teach them ethics, somebody said he want to fight teenage pregnancy and crime in Africa. The list is endless with noble answers; I know some ideas are running through your mind as well. However, the reason why those dreams and noble visions are yet to be fulfilled is because of MONEY. We are not financially free that’s why we can’t do what we want to do rather we’re doing what we have to do because our resources are limited. You can imagine what money is holding us back from achieving.

Before you talk about freedom you need to understand where you are then design a map to take you where you want to be. If you don’t know where you are going, you’re not qualified for help. Most sheep didn’t get to harbour because their destination was not clear from unset.

Quickly I will show you four distinct sources you can earn both Actively and Passively:

1. EMPLOYEE – An employee is someone who works for another to make money or to earn salary. An employee is hired and can be fired at any given time and his goal is SECURITY. He desires a job with security. It is not a bad thing that you work to earn an income; you must understand that most people want to start at this level because things like pension, condition of service and job security are important to an employee. Though, for every employee there are six stages of carrier. A job is different from carrier.


0 – 25 = Preparation stage – This stage you go to school to get the basic knowledge, you learn how to read, write & solve calculations; even your National Youth Service is part of this stage. Around the world it is expected that when you’re 25yrs you should be done with your education at the tertiary level but in this part of the world Nigeria it’s not always the case, some are many years above the preparatory stage, some are just starting while others are mid way their education.

25 = Anchor stage – You are expected to start-up your carrier at this stage, at 25 you should have gotten that job you desire, but understand that if you miss the preparation stage in the anchor stage you’re already above the age and things are not looking so bright for you at this stage.

26 – 30 = Early carrier stage – This is a stage where you begin to make choices on the type of job you want, you explore industries to get yourself stable.

31 – 40 = Mid-carrier stage – This is the point you’re the strongest in your carrier, companies don’t want you to leave their organization because they want to get the best out of you, you are thinking of getting stable, thinking about your investment

41 – 50 = Late carrier stage – Companies are not so much interested in investing in you anymore because they’re looking for younger people that can do what you do even much better. At this stage a lot of people find themselves perplexed because they’re not prepared for this stage, they thought that life will always be like the mid carrier stage but its not so.

Above 50 = The twilight stage – At this stage you should be thinking of retiring and that is dependent on how you have planned your future.

As an employee you must understand where you are per time so that you can begin to design how you’re going to get to financial freedom.

2. SELF EMPLOYED – The self employed is someone who works to make money for himself, he is a small business owner. You own a shop and once you leave or out of town most likely everything comes to a halt or you run a business that without your physical presence sales won’t be made then you are self employed. Some people make a mistake here, they get angry with their boss and resign from their job to set up a business, you are simply self employed. The difference between an employee and a small business owner/self employed is that the boss has changed. The self employed boss is himself because nobody commands him to do things or give him tasks. The employee work for another while the self employed works for himself. For the self employed “Do It Yourself” attitude is very important to them. Their goal is independence.

3. BUSINESS OWNER – The business owner has built his business around a system where he earns passively in order words, he mustn’t be there to earn. Referring to business here as recommended by a prolific writer and author of the Rich Dad series Robert Kiyosaki is a business that has minimum of 500 workforce or 500 people are directly impacted by your operations. This is when you can boldly say you own a business. The business owner’s goal is wealth creation.

4. INVESTORS – These categories of people have their money working for them. I am not talking about having a few shares here and there. An investor has his business on the floor of stock exchange and people are buying its shares. His money generates more money for him and his goal is freedom.

If you must be financially free, you need to shift from being an employee or self employed/small business owner to business owner and investors.

To build a business it must not resolve around you


In my write up on STEPS TO FINANCIAL FREEDOM http://wp.me/p3tXYw-2m I took time to explain how you can move from active income to passive income, take time out to go through it.  Always remember financial freedom is no other person’s responsibility but you.


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Be wise, be financially free!!!


Categories: Financial Intelligence

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