In one of my previous articles, I described what are assets. Kiyosaki distinguished that assets will FEED you while liabilities will EAT you. Assets bring in money while liabilities drain it out.
Having said that, the true mindset of the rich having the proper mindset in financial intelligence is to build income-generating assets. And this is where the idea of multiple sources of income comes from.
How many sources of income do you have? Most of us only have our jobs as our sole source of income which places us to a risk the moment we got laid off or terminated, most especially if you don’t have an emergency fund. Having multiple sources of income fast tracks us into achieving financial freedom. It gives us some sort of security the moment one source of income fails.
As tackled also in one of my previous articles, incomes can be classified as active income and passive income. Active incomes are produced the moment you work for it. Without you working, no income will be produced. In contrast, passive income are incomes that are produced even while you sleep. As Warren Buffet said: “Never depend on single income. Make investment to create a second income.”
In Kiyosaki’s Cashflow Quadrant, the left side of the quadrant, both E (Employee) and S (Self-Employed) are active income earners. In contrast, the right side of the quadrant, both B (Big Business Owner) and I (Investor) are passive income earners. 90% of the world’s population belong to the left quadrant whereas only 10% belong to the right quadrant. Why is that? Because passive income require greater risk in order to produce. Those persons willing and determined to get out of their comfort zone increases the chances to be in the right quadrant.
As an author of this blog, I have so far three sources of income: employment (active income), online income (semi-passive income), and interest and investment income (passive income). In my effort to add another source of income, I joined a network marketing business. MLMs or Multi-Level Marketing System are one of the best ways to get involved in the business in comparison to starting a business from scratch which requires a lot of effort and a large capital and buying a business franchise which requires an even larger capital. As of now, I am looking for business partners both locally and abroad who are committed and determined to do this business with me. I hope some of my readers will join me in this endeavor. To know more about this opportunity, I recommend you to view the ad I created here.
Starting this month, I will resume my monthly networth report to keep track of my developments. Once again, I will write about my expenses, the developments of my portfolio income, and my progress on the network marketing business I joined. The last time I updated it was May 2009 since I became very very occupied with our online business back then.