TWO TYPES OF INCOME: Henry Hungry is applying for a job. He walks into this nice office and meets a well-dressed fellow behind the desk. Henry smiles and asks him, Sir, is there a job for me? The Man Says, Im actually looking for a general manager. you need to sign a contract for three years. Interested? Hmmm. Sorry for being upfront, but how much will I earn? Henry Hungry asks. The man says. Ill let you choose your salary. OPTION 1: is I pay you P30,000 a month for 36 months. OPTION 2: is I pay you one centavo on the first month and I double it every month for 36 months. Henry starts calculating. Option 2 is interesting. If I choose that, I earn one centavo on the first month, two cents on the second month, four cents on the third month, 8 cents, on the fourth month, 16 cents on the fifth month, 32 cents on the sixth month... after 12 months of working with you, I would have received a total of... sheet, P23! Sir, I need the money badly. I choose Option 1 where I earn P30, 000 flat each month. By the first year, I’d already have earned P360,000. And after three years, that would a total to P1 million. I definitely choose Option 1. Okay, if thats what you want. Then the man asks, by the way, if you choose option 2, do you know how much youll earn by the end of three years? I didnt finishing computing that option. Its too depressing. The man Calculates in front of Henry hungry. On the first month, you receive on centavo, on the second month, you receive two centavos... He goes on and on, and Henry doesnt mind him too much. Hes focused on the P1 million hell be earning in three years. He feels pretty good about himself. Finally, the man looks up and shows Henry Hungry the calculator. In 36 months, you would have earned P680 million. You exchanged that for one million. Im sorry, my friend, I cant take you as my General Manager. Your decision making skills are terrible. Let me give you the figures... There are only two types of income in this world: Linear (Active) and Exponential (Passive) Linear Income is like a piece of bread. You eat and it’s gone. After that, you have to look for another piece of bread. Exponential income is like a seed. You cant eat it at first, but if you plant it and wait for a while, you can eat as much as you want to. You have an infinite source of fruit if you keep on planting some of the seeds. Many Filipinos today have only one income stream - their jobs - and jobs are linear income. What is exponential income? Thats what a regular employee earns when he invests in mutual funds and stocks. (So you see everyone can earn exponential income, even employees). Thats what a store owner earn when he/she branches out, hires other store managers, or sells franchises of her store. Thats what a distributor earns when he distributes his goods to various stores. Thats what a real state investor earns when she buys profitable rental property. Exponential income - also called passive income - means earning for a very longtime from work you did only once at the very start. Hey, income is income. Earn linear income when you can! But invest your linear income so you can earn exponential income. Because if you want to be wealthy, you need to find a way to earn exponential income. =vmobileteamtitans.net/rodelnavarro.html
Posted on: Mon, 08 Dec 2014 07:38:46 +0000
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