Have you ever wondered about making extra sources of income? You might be thinking why I need an extra source of income or I make enough money to spend. If you started a side hustle, it can give you more freedom financially and you’ll have more time for yourself to do the things you want.
Ways Most People Earn Money:
As a regular employee, you would work for a company and trade your time for money. If you want to earn more money, you must work more hours. Another option is to work for another company that pays better. With this position in the quadrant, there is no passive income. If you don't work, you don't make any money.
Then there is self-employment which may be better than being an employee, but in reality, you are still trading time for money. You own your own business or freelance, but in reality, the business owns you. The positive benefit you have is more personal and financial freedom than an employee working for someone else.
Or perhaps you are interested in business ownership. You would have employees working for you. You aren't selling your time for money, but rather selling a product or service. In other words, you don't have to be working for the business to generate income.
Better Ways to Earn Money:
However, having investments like stocks, bonds, and real estate can generate a steady cash flow. This is where you truly earn passive income. These are the investments that will help you to retire. Another method is side hustling.
A side hustle is a side gig that you can work on top of your full-time job. It is a flexible second job that brings in money, but it is also typically something that you are passionate about, that you don't get to pursue in your main job.
Why Wealthier People Get More Wealthy:
Wealthy people can get richer because they may have a different mindset than the poor. The poor believe that going to college to get a good job, then trading their hours in for money is the best way of income. The rich people may start a business and invest their money, realizing that having multiple sources of income as well as both passive and active income is important.
A rich mindset seeks to spend their time, resources, and energy on work that continues to pay off long after the effort has been invested. A rich mindset is all about getting a flywheel spinning. Building momentum. Creating systems that continue to generate value on their own. A poor mindset is all about short-term returns. Hours-for-dollars. Resources invested without an immediate return are considered resources wasted.
Written by Anna Li
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