A job is where you work hard daily for someone else’s dream, to grow other’s business, to get a paycheck and get retired. But most of you are thinking that there is no other way, so let me tell you that there are three types of incomes which are described in the picture below.
Normal income is the income which you earn by a job you can convert it in to any of these two incomes by using the money earned by your job and investing it in these two types of income. And how to do it without risk is described below.
DISADVANTAGES OF NORMAL INCOME
There are many disadvantages of a normal income. The first is that you could never be rich by normal income, many people think that they could get better when they get promoted and get a higher salary, But the truth is that nothing changes because when you get higher salary, you then desire for more and this process goes on until you get retired and when you get retired you realize that you got nothing for all of that hard work. The second is that “normal income” is the most highly taxed income because the middle class pays the most tax. In portfolio and passive income there is much earning but too little tax or sometimes there is no tax.
RICH DON’T PAY TAXES!
This is a fact that rich people does not pay taxes or pays less taxes, the poor and the middle class people pays taxes, more than rich people, which means that a normal employee with an average salary, pays more tax than a millionaire businessman. The reason is that the rich people are financially literate and knows how to get rid of taxes or pay less taxes legally.
ALL IS ABOUT MONEY!
Many people often say that “I don’t like money”, “I don’t do it for money”, “Money means nothing to me”. Yes money isn’t important than many of the things but in terms of a job, you do it for money it isn’t because you are greedy, it is because the money is one of your needs. You go to work every day 9-5, work hard, at the end get a paycheck, then when your salary get finished you just complain yourself but when you get a new paycheck you just get back to your routine. In most people’s lives this goes on every month and after that, NOTHING CHANGES.
CONVERT NORMAL INCOME INTO PASSIVE AND PORTFOLIO INCOME WITHOUT RISK
Converting your normal income to portfolio or passive income needs some investments which is the hardest task for many people because of the risk. “Investment isn’t risky, the investor is risky” which means you are the one who is risky not the investment. The simple way to invest without getting being risky is that, get some financial education which is not available at your school (as told in my previous article “Don’t go to school to be successful“). So to get financial knowledge or financial literacy you must read some books like “rich dad poor dad”, “guide to investing”, etc. Or you have to get some courses and experience or you could also wait for my next article which would be on guide for Investment and business.
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Asad Khawar, 15 years old.
administrator of Gegapedia and Gegamall.