I live by the eternal truth, “the more income, the better”. It seems a logical way to approach life. I do not see myself as the overly materialistic, consumption focused, American stereotype that we as a society tend to be viewed as. My lifestyle and expenses are average for a college student. I don’t even own a car!

What I plan to address in this article is income. Myths about it, truths about it, and ways to have more of it. There is a strong possibility I will begin to sound like a “get rich quick scheme” as I write. I can only hope that it turns out to be just that.

First, a definition. In my book (pending writing/publishing), I feel there are 4 main types of income.

1. Earned Income: Income from your employer/job. This is generally the hardest income to get. It requires a lot of sacrifice and time invested for a nominal return. Earned income should always be a last resort income. It can be successfully utilized to create income that can then be rolled into other income types for a better return.

2. Unearned Income: I classify unearned income as money that you receive through no deliberate action of your own. It can show up in the form of a gift, an inheritance, finding a $20 bill on the grocery store floor, or purely by chance encounters. Unearned income is by far the best income. However, it is generally not prudent to rely on unearned income for your livelihood as it is very hard to guarantee. Consider those who use the Powerball Lottery as a wealth building system.

3. ROI Income: Return on Investment (ROI) income is great. I define it as: Income that is generated as a direct result of an investment made. There are seemingly countless ways to invest. Stocks, Bonds, Currency, Commodities, Futures, Equities, Real Estate, Money Market Accounts, and Private Lending to name a few. Serious money can be generated from investing income. The most important thing to remember is when it comes to investing those who have the most knowledge, have the most dollars.

4. Self-created Income:I make this a separate classification. The definition of self-created income is, income that is generated directly by an individual. The argument can be made that #1: Earned income can fall under self created income. Also, that #2: Unearned income can happen as a result of a person’s lifestyle or decision making habits. The same for ROI income. I would agree. But I think self-created income by definition refers to income from far more opportunity than any of the others.

In my next post I will address self-created income specifically. I will also in future posts discuss #1-3.

But first….

    A few income myths and truths

A. It takes money to make money. Debunking this myth is actually something writers like to do a lot. Motivational speakers will say it all the time, “it takes will power, discipline, and knowledge”. First, they are right! However, I would like to offer a different take on the matter.

In category 3: ROI income; capital to invest is usually required in order to create income.

In category 1: Earned income; no money is required.
[Usually some knowledge and job skills are a necessity in order to be given a position that pays you money. Not always though]

In category 2: unearned income; there is no money at all required.

In category 4: self-created income; the only 2 required components are yourself and time.

I will spend a lot of time in the blog discussing self-created income and specific methods that I have used or have seen others use in order to make yourself money.

B. Money is the root of all evil:

-Human beings are the root of all evil. People love telling stories about lottery winners who go bankrupt, stock brokers who lose everything and commit suicide, or just in general rich people who are miserable. Few people enjoy talking about the people who have healthy bank accounts and are also genuinely good, honest, happy people.

I can’t stress enough that this unhappiness, even though it seems related to the money, is completely based upon personal flaws in the people. There are a lot of perspectives on this and I feel that pointing out any individual one will just lead to argument and unproductive discussion. So I am gonna ask you, the reader, to spend your time arguing about something important.

How to generate more income!