Think about income as falling into three categories - earned, investment and passive. These are known as income streams. An income stream pays you money on a regular basis.
Earned income usually comes from a job. It's the hours for dollars concept.
Investment income comes from interest on bank accounts, dividends or profits from stocks and bonds.
Passive income is money earned without the minute-to-minute, hour-to-hour and day-to-day time and effort. It can come from such things as royalties, a network marketing override check or income from rental property.
When considering possible passive income, be weary of promises about doing nothing and still making thousands of dollars. Do your homework!
Let's take a look at three ways (of many) to generate passive income.
Network Marketing -- A business opportunity where you distribute a product or service and recruit a team to duplicate what you're doing. As your team grows, the network marketing company pays you a percentage and bonuses based on your team's revenue.
Example of network marketing companies: Arbonne International, Melaleuca, Nikken, Shaklee and many, many more.
It takes time to build a team and develop passive income. Choose your company wisely; network marketing is not get rich quick. It takes time to build a business but once you've built your business, you'll begin enjoying the rewards of passive income.
Internet Affiliate Marketing Programs -- In a nutshell, it's about using one Internet site to drive traffic to another Internet site. You are rewarded with a commission when your referred customer makes a purchase.
Example of an affiliate program: Amazon.com
It takes a large number of referrals to generate substantial passive income, but if you have the Internet traffic it can truly become passive income.
Creative and Intellectual Property - Royalties are paid to you each time someone reads, listens or uses your authored books, music/songs, software, inventions or patents. It takes work to write, develop and/or invent but the benefit of this work can potentially generate passive income for generations.
Example of creative and intellectual property: In the early 1960's songwriter Paul Anka wrote the theme music for Johnny Carson's Tonight Show. Every time that song played, he was paid a royalty.
It is important to do your research. Find an attorney and other professionals who are trained to protect your creative works. There are many legal issues involved with intellectual property but it's certainly worth the time and effort.
Can you see how multiple streams of income, especially passive income, could produce a financially rewarding future? Financial freedom is having your money work for you.
Passive income allows you to leverage your time and money - you can do what you want to do, not what you have to do to bring in an income or additional income.
Enough Of Everything For Everyone - That's Abundance
Let's start with the mind-set of abundance. What does "abundance" mean to you? I'm talking about abundance in all aspects of your life - personal, professional, spiritual and financial. If you sat down with a piece of paper, what would you write about the abundance you're experiencing today? In fact, why don't you do that and then come back and finish reading this article.
Let's explore how an abundant mind-set begins. The human mind is composed of two levels: consciousness and unconsciousness. Both work together to create and mold our thoughts, actions and personality.
Understanding and appreciating the unique function and characteristic of each "part" of the mind is vital to understanding how and why you're allowing (or not allowing) prosperity, abundance and wealth into your life.
Abundance is simply a concept. And, as a concept it begins in your mind and works its way out into your everyday life. You either believe you deserve to live in abundance, or you don't. Understanding the "workings" of your mind means understanding how you function on both an unconscious and conscious level. When you allow it to, your mind will be a tireless and powerful success and wealth-building ally.
Here's the difference between the conscious and unconscious parts of your mind:
The conscious part of your mind is the awareness you have of the world and your personal role in it.
~ The function of the conscious mind is to analyze and rationally tie everything together.
~ It's the tangible link between thought, reality and the action you decide to take.
~ Your opinions, likes and dislikes, judgments, prejudices and realities are filtered through the analytical conscious mind.
The unconscious part of your mind controls at least ninety percent of mental activity.
~ Your unconscious mind is a never-ending source for thoughts and memories.
~ Reality is stored and preserved in the "all-remembering" unconscious mind.
~ Your negative and positive thoughts, feelings, memories, emotions and reactions, bodily functions, stress, illness and health, rational and irrational thinking, decision-making and creativity are found in the powerful unconscious mind.
You're reading this article with the conscious part of your mind; you're absorbing it with the unconscious part. Choosing to believe, disbelieve, use or discard this article is based upon the beliefs you have stored in your unconscious mind. These day-to-day beliefs are based on your thoughts, memories and experiences from childhood through to this very moment.
Let me give you an example:
Are you afraid you'll run out of money? If you are, then somewhere on the unconscious level your belief system is based on lack. This is called "poverty consciousness."
Why is poverty consciousness so negative and financially limiting? Focusing on lack diverts your energy away from the positive aspects of prosperity. Focus on lack long enough and eventually your belief system about money, prosperity and abundance becomes filled negativity.
What can you do? Strive to focus your energy on the positives. Begin by analyzing your beliefs about the value you're placing on your time, energy and money making abilities.
Let's explore how an abundant mind-set begins. The human mind is composed of two levels: consciousness and unconsciousness. Both work together to create and mold our thoughts, actions and personality.
Understanding and appreciating the unique function and characteristic of each "part" of the mind is vital to understanding how and why you're allowing (or not allowing) prosperity, abundance and wealth into your life.
Abundance is simply a concept. And, as a concept it begins in your mind and works its way out into your everyday life. You either believe you deserve to live in abundance, or you don't. Understanding the "workings" of your mind means understanding how you function on both an unconscious and conscious level. When you allow it to, your mind will be a tireless and powerful success and wealth-building ally.
Here's the difference between the conscious and unconscious parts of your mind:
The conscious part of your mind is the awareness you have of the world and your personal role in it.
~ The function of the conscious mind is to analyze and rationally tie everything together.
~ It's the tangible link between thought, reality and the action you decide to take.
~ Your opinions, likes and dislikes, judgments, prejudices and realities are filtered through the analytical conscious mind.
The unconscious part of your mind controls at least ninety percent of mental activity.
~ Your unconscious mind is a never-ending source for thoughts and memories.
~ Reality is stored and preserved in the "all-remembering" unconscious mind.
~ Your negative and positive thoughts, feelings, memories, emotions and reactions, bodily functions, stress, illness and health, rational and irrational thinking, decision-making and creativity are found in the powerful unconscious mind.
You're reading this article with the conscious part of your mind; you're absorbing it with the unconscious part. Choosing to believe, disbelieve, use or discard this article is based upon the beliefs you have stored in your unconscious mind. These day-to-day beliefs are based on your thoughts, memories and experiences from childhood through to this very moment.
Let me give you an example:
Are you afraid you'll run out of money? If you are, then somewhere on the unconscious level your belief system is based on lack. This is called "poverty consciousness."
Why is poverty consciousness so negative and financially limiting? Focusing on lack diverts your energy away from the positive aspects of prosperity. Focus on lack long enough and eventually your belief system about money, prosperity and abundance becomes filled negativity.
What can you do? Strive to focus your energy on the positives. Begin by analyzing your beliefs about the value you're placing on your time, energy and money making abilities.
Wealth Inside Out
Wealthy to me is the ability to live comfortably and know my family will always be taken care of, no matter what. It's the ability to give financially to those causes I feel make our world a better place. And, it's the ability to be financially independent.
On average, many women are uncomfortable discussing money and even more uncomfortable managing money. How often do you hear women say words like rich or wealthy when describing their finances or goals?
Money and self-esteem go hand-in-hand. You can have a million dollars but if you don't feel you're worth a million dollars, you're still not financially independent.
Let me ask you a question and please take a few minutes with pen and paper to answer. Even allow yourself to feel the emotions of your answer:
If you had three million dollars in the bank right now, how would your life be different?
Look carefully at what you wrote. Are there more positives in your answer or negatives? Does wealth feel like a joyous emotion or a burden? In your mind's eye, can you picture yourself with three million dollars or did it seem like a fantasy?
Let's look at one of the emotional aspects women often deal with when striving for financial independence - guilt.
Simply put, women often feel guilty for having and enjoying money. Why? Because there are people, whether we know them or not, who don't have money. Could there be old programs in the mind saying, "Don't be selfish, share with your sister."
Do you know that studies have found that on average, we'll unconsciously allow ourselves to earn only within ten to twenty per cent of what our friends and family earn? Why do you think that is? You're right. It's guilt. It's the fear that we will not be accepted if we have more money than the other important people in our lives.
Guilt and self-esteem go hand-in-hand. The more secure you are within yourself, the more you'll allow yourself to earn and enjoy wealth.
Instead of looking at wealth and money in terms of guilt, how about looking in terms of how we can be of service to others. Can you think of wealthy women role models who are making a difference with their money? How about Oprah Winfrey? Do you think Oprah feels guilty about being a billionaire?
If you had three million dollars in the bank, how would your life be different?
How could life be more comfortable?
How would you feel knowing you'd never have to worry about money?
Which causes could you support?
Isn't it time we concentrate on the positives of our power, especially our financial power? Wealth truly begins on the inside, inside your heart and mind.
On average, many women are uncomfortable discussing money and even more uncomfortable managing money. How often do you hear women say words like rich or wealthy when describing their finances or goals?
Money and self-esteem go hand-in-hand. You can have a million dollars but if you don't feel you're worth a million dollars, you're still not financially independent.
Let me ask you a question and please take a few minutes with pen and paper to answer. Even allow yourself to feel the emotions of your answer:
If you had three million dollars in the bank right now, how would your life be different?
Look carefully at what you wrote. Are there more positives in your answer or negatives? Does wealth feel like a joyous emotion or a burden? In your mind's eye, can you picture yourself with three million dollars or did it seem like a fantasy?
Let's look at one of the emotional aspects women often deal with when striving for financial independence - guilt.
Simply put, women often feel guilty for having and enjoying money. Why? Because there are people, whether we know them or not, who don't have money. Could there be old programs in the mind saying, "Don't be selfish, share with your sister."
Do you know that studies have found that on average, we'll unconsciously allow ourselves to earn only within ten to twenty per cent of what our friends and family earn? Why do you think that is? You're right. It's guilt. It's the fear that we will not be accepted if we have more money than the other important people in our lives.
Guilt and self-esteem go hand-in-hand. The more secure you are within yourself, the more you'll allow yourself to earn and enjoy wealth.
Instead of looking at wealth and money in terms of guilt, how about looking in terms of how we can be of service to others. Can you think of wealthy women role models who are making a difference with their money? How about Oprah Winfrey? Do you think Oprah feels guilty about being a billionaire?
If you had three million dollars in the bank, how would your life be different?
How could life be more comfortable?
How would you feel knowing you'd never have to worry about money?
Which causes could you support?
Isn't it time we concentrate on the positives of our power, especially our financial power? Wealth truly begins on the inside, inside your heart and mind.
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