Becoming Financially Free from Multiple Sources of Income: Part II

                                                                                         

Becoming Financially Free from Multiple Sources of Income
Part II: Unlimited Income

In Part I, we learned that being an employee or self-employed is not necessarily the fast track to financial freedom. However, they are good places to start and learn the ropes of the business world.

In this article, we will uncover the secrets to true financial freedom with regard to the same six parameters we looked at last week. This is the week to open our minds and strategies to unlimited income. That is the number one cardinal rule to riches: never have limits on your income.

The first category of the three unlimited sources of income is the business owner. This includes franchising. The business owner is different than the self-employed “small business” owner. The main difference is the fact that the business owner has systemized his business to the point that he is not needed to run the business. This means that he is earning passive income and thus may become financially free once his passive income surpasses his monthly expenses. The business owner also has high risk, possibility of great leverage (employees), great tax advantages, but high overhead. The wealthiest people in the world are business owners.

The second category of unlimited income is really a subcategory of the business owner: an independent representative in a relationship marketing company. Many people have a negative or inaccurate conception of this type of business owner. If you connect with a great company with a great product that is attached to a long-term industry trend, this avenue can lead to great success. The advantages of this structure is that you have low risk (low startup cost), potential for great leverage, strong residual income, great tax advantages, and low overhead. You get all the advantages of the standard business owner, but without the high risk and overhead. After all, how many people can risk a million dollars to open their own business?

The third category is where all the other categories are striving to reach: the investor. There is also unlimited income potential to be found here, but the risk can be variable. It will take much education and sophistication to enter the realm of investing at a serious level. You can leverage yourself with investing and you may develop residual income as well. The tax advantages are great and the overhead is low. All extra income developed from the other sources of income will go into the investment fund to produce more passive income and wealth.

So, there you have it; the five ways to produce income. How many categories are you in? Maybe you are an employee and would like to start a home-based business part-time. And maybe you’d like to start investing at the same time. Many people are in three or more categories. The trick is to focus on the categories that will enable you to start creating and increasing passive or residual income.

Donald Trump and Robert Kiyosaki, both great financial educators, are strong proponents of the relationship marketing approach to starting a business. They know something that the average person doesn’t know; that starting a business is not a “walk in the park.” They know that the support systems are in place to help you succeed as an independent representative for a company. You are essentially building your company within the parent company. Their book “Why We Want You to Be Rich” is a good place to read about strategies toward achieving your own financial freedom.

About the author:
Joe Jacobson is a travel professional working with YTB Travel Network. His focus is on helping others start their own online travel business, as well as helping nonprofits use travel as a fundraising tool. Please visit the website YTB Home Based Business

Article Source: http://www.Free-Articles-Zone.com