Welcome. I’m here to teach you how to think. Critical thinking is required for knowing how generating income works. There are many people out there who make promises that if you listen to them, you’ll make money. Let’s look at the most common ways to make money that are proven to work. Depending on the risk you’re willing to take, the reward will depend. For all my children, I had to teach them about these methods so they’re not fooled by people who think they know how money works.
Also, share this power point to those who need help understanding how income works:
V/R,
Norman “Otto” “Harvey ” Bohn – 12/2024
Most common way people make money is by working for a company. Exchanging a person’s time by completing tasks and receiving either contractor (1099 IRS form pay), hourly (W2), or salary (W2). Depending on the task and expertise, the amount you make will be higher. Being a business owner is a higher risk way to make money as you must carry all the risks. Businesses exist on two pieces of paper; revenue and costs. When all the costs are covered, whatever revenue that is leftover is possible income. Side hustles is a way to make extra cash on the site without working for another company. This could be made by providing a service or selling something. Capital gains from buying and selling stocks is an option, but should require money upfront in order to make money. Need money to make money here. There’s Real Estate investments that help people earn income either by buying and selling of properties or renting. Loans against the property are income options if your renters are paying down the mortgage and loan. Lastly, those who have money because people die and they’re the inheritor, is a way that some people come into money. Below is a chart that captures most of this at a high level. If you’re going to earn income and be stable, you’ll want to consider what is success. You have bills to pay and normal goals such as travel, medical coverage, and retirement savings. Most people get their needs met by earning income from a business. It’s not common that people start or own a business. Most small businesses fail and are high risk. Most successful business owners earn income from a market that isn’t saturated and most often, require them to spend much more time for reward. Business owners don’t take time off. When they’re not working, they’re not making any money. There’s no paid vacation. Business owners must pay for their own insurance and those they employ. Most businesses don’t see a return or stable income for years.
How not to make good money
- Only thinking you’ll make money, but do nothing about it. Except for inheritance, most people need to do something to make money. It’s OK to pray and think about money. However, expecting money to come without any work is a loser, poor person thinking process.
- Be careful of promises that you’ll need to have a certain vibe or “positive attitude”. You’ll hear “life coaches” tell you that money comes from listening to them. They’ll reference other people who have money or talk about making money, but have nothing for themselves. If the person doesn’t have any money or are pretending to have money, likely, you’ll not learn how to make money. Refer to the above methods to honestly earn something. If only a handful of people make money through a specific method, it’s most likely timing. Some people need attention and they daydream with others about how money is made. Look to earn money through time tested, proven methods. There’s no free money.
- Multi-Level-Marketing, also known as pyramid schemes, are not good ways to make any good money. The amount of time spent vs the amount of return is way less than minimum wage. Most of these organizations make money by the few on top who make promises of passive income. Except for the 1-5 people on top, the rest do not make any money. They market that you’ll be rich and have cars, houses, and vacations. Most of these are loser ventures. The internet has plenty of reviews on how bad these organizations are and shame on you for falling for it. In the end, these organizations will gas light you into feeling like you’re the one who didn’t work hard enough. “Because you didn’t vibe hard enough or work hard enough, that’s why you’re still poor.” You can only sell to so many people and in the end, they expect you to sell to the limited amount of people you know. MLM feeds on poor, desperate people and is a loser.
In the end, money is only earned a few ways. Someone must be willing to part ways with money and give it to you in exchange for legally made goods and services. Make plans for how you make money from the listings above.
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