Mar 03

There are basically 5 methods of generating an income: 

  1. Welfare: If you are reading this blog I assume you are planning for something better.
  2. Salary or Wages: You work for a boss and are paid for your work. Again, I assume you are planning for something else.
  3. Self-Employment: You work for the public and are paid for your work. A lot of people who think they own a business are actually in this category.
  4. Business Owner: You own and work within a business; part of your income is in payment for your work and part is through the profits of the business. It is the differencebetween this and self-employment that I would like to discuss.
  5. Passive Investment: You own a ton of shares, bonds, property and/or cash and it generates so much money you will never be able to spend it. This is where I hope you are going. More...