Three Types of Income

I love reading Robert Kiyosaki’s books on his Rich Dad Poor Dad series.

If you are not reading them, you should be as they are a terrific source of Financial IQ.

In his books, Robert talks about 3 different types of Income:

1. Ordinary Earned Income

2. Passive Income

3. Portfolio Income

Let me describe these to you…

1. Ordinary Earned Income.

This is the income derived from our jobs. It prescribes to the thinking of “Go to school, get good grades, and find a safe secure job.” Many people find themselves stuck in this income category, going through the motions of going to work, paying bills, and repeat, day in and day out, for most of their lives. We call this the “rat race of life.”

2. Passive Income.

This is income derived from real estate investments. It’s made up of the positive cash flow from real estate properties and the income created from buying and selling real estate assets.

3. Portfolio Income.

This income is derived from paper assets such as stocks and bonds.

The real key to becoming wealthy is your ability to change your earned income into passive or portfolio income as quickly as possible.

Ordinary Earned Income is created from trading time for money.

Passive and Portfolio Income is created from money working for you.

The quicker we can change our earned income into passive or portfolio income the quicker we can exit the rat race, enjoy freedom, and start enjoying what retirement has to offer.

The only way to move from ordinary income to passive or portfolio income is by increasing your financial IQ … God gave us all two great gifts, your mind and your time. It’s totally up to you what you do with those gifts. With each dollar we create from the above types of income, only we have the power to determine our destiny.

Kind Regards,

John C. Heeney, CEO Glenroe Lending

Glenroe Farms Limited ( Private Lending )

We build LEGACY to create TRANQUILITY

john@glenroelending.ca

519 808 7370