This page provides information about Business and Finance. It also provides articles / information like finding a second home when doing businesses.
Creating Wealth from Incomes
Every one wants to have Financial Freedom. If you are currently employed or self-employed, you’re likely making an active income at this stage. What is Active Income?
DEFINITION OF ‘ACTIVE INCOME’
Income for which services have been performed. This includes wages, tips, salaries, commissions and income from businesses in which there is material participation. Generally, an active income help to support us in our daily needs – foods and necessities and hopefully, if there are any surplus for our leisure.
In order to have Financial Freedom, we need more than an Active Income. By having additional incomes (other than active income), then only we could Create Wealth and find Financial Freedom. So what other types of income are available?
TYPES OF INCOME
Traditionally there are three main categories of income : active income, passive income and portfolio income. These categories of income are important because losses in passive income generally cannot be offset against active or portfolio income. With the advancement of Technology, a new category of income is born – MASSIVE INCOME.
DEFINITION OF ‘PASSIVE INCOME’
Earnings an individual derives from a rental property, limited partnership or other enterprise in which he or she is not actively involved. Basically, this means that you are making money by doing nothing. Off course, to have Passive Income, you need to build your system first such as purchase a property and find a tenant in order to have the rental income. Another example is create a website and bring traffic to your website and when people signed up for your service, you get pay. There are many videos in You Tube that you can learn to create a website yourself. If you prefer to outsource your website, you can write to Admin by filing up the Contact Form.
DEFINITION OF ‘PORTFOLIO INCOME’
Income from investments, dividends, interest, royalties and capital gains. Portfolio income does not come from passive investments and is not earned through normal business activity. Typically, income from interest on money that has been loaned does not count as portfolio income.
DEFINITION OF ‘MASSIVE INCOME’
Large Scale or amount of income generated at the same time. Such massive income could only be possible with the used of internet as the income could come from any where around the world at the same time.
To know more about some of these income and how you could start planning to earn them, check out the links below :
Starting your E-COMMERCE Business in Cambodia
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