I decided to make my focus in part 2 a comparison of 2 income types.

Earned and Alternative.

Earned income is quite typical and we all know what it is. So what I hope to discusses it my theory behind earned income and some methods of alternative income that people might find useful.

In my previous post I defined the different types of income that a person can have and the pro’s and cons of each.

I also made the statement, “earned income is the worst type of income there is”.

Making statements like that are dangerous as earned income is the most common form of income for 99% of us. I know several people who have already labeled me (and my blog) as another one of those “head in the clouds, unrealistic, Four Hour Work Week Wannabees.

My first goal is to assure everyone that that is not the case.

Let’s now examine at length the pro’s and cons of earned income and why it is usually a necessary evil.

Benefits of earned income

1. Commonality: Everyone generally has earned income. Being someone without earned income usually is viewed as a negative. If you are someone with no earned income either you are incredibly lazy, a leech off of society, or more wealthy than the average person(which just isn’t fair)!

2. Recognition: Getting a paycheck is like someone saying to you, “good work, here you go”. You work hard in college and get a job that nets you a comfortable $100,000 per year and you are someone who has made it in the eyes of most. Not many people look down their noses at PHDs.

3. Security: I say this cautiously. Depending on what your job is, there is a level of security that comes with having it. Although, this is a fact that is beginning to be questioned given recent economic situations. Real Unemployment

I do not advocate going out and quitting your job today! The issue is that most people, especially FAMILIES, have 1-2 income streams. Example, the dad works at bank and makes $50k/yr. While mom is a stay at homer who has a work from home job that makes them an extra $12k/yr. By today’s standard’s this is a family in decent financial shape.

What happens when the bank downsizes and dad loses that $50k/yr income? This sort of situation is so common today that I shutter to think of how many people are really facing this. The answer is that the family’s marriage falls apart, the assets begin to liquidate, and everything crumbles.

What happens in the same situation if the family has alternative streams of income that produce $40-$50k per year? Who knows? Likely, they would be a lot better off.

Consider an even more secure situation. Same family, $62k/yr earned income. 15 passive income streams that EACH generate $5-$10k per year individually. Setting up a system that creates $5,000 per year can be done in 4-5 hours by anyone with a brain and a mouse pad!

The reality is that earned income paid from an employer is not secure. In the grand scheme your employer can pull the plug on you at any time. Many people go through life unscathed and are able to have a stable career.

Most people never consider the bleak alternative until it is upon them. Long after it is far too late to cope with. This is the way of life I seek to challenge. The lifestyle that relies on an external source to provide for everything. It is modern day slavery, except the slaves wear a shirt and tie.

Consider adopting the lifestyle where you have an earned income, because of the desire to, not because of the necessity. This is the lifestyle I seek to live.

If you go to a job every day that you hate, but aren’t actively taking steps to improve your position. You have no one to be mad at except for yourself. I would submit that you shouldn’t even waste time being mad at yourself for it. Just make a list of what you want to accomplish and start figuring out how to make
the list a reality.

If your #1 item on the list reads, “make $100,000 more this year”, then go to Google. Search, “Ways to make an additional $100,000 per year while working full time. Read through some of the garbage spam that shows up and start thinking of ideas. Then go back to your list and refine it to say, “make $100,000 more this year by XXX”.

XXX could be a number of things here I will offer a list to consider with the following warning: There is no such thing as getting something, for doing nothing. Wall street bankers got billions of bailout dollars because they were in the powerful position of being Wall Street bankers. Position is all that matters.

Famous motivational speaker Tony Robbins
is known for saying, “You are what you decide to be”. For the purposes of this post consider that, “You are what you decide to position yourself to be”.

So a list to consider…

METHODS OF SUPPLEMENTAL INCOME

Real Estate Investing: http://www.reiclub.com

Sell crap on Ebay: http://www.ebay.com

Sell things locally: http://www.craigslist.com

Clean out your cluttered house: A yard sale how-to

Internet Marketing: Google Adsense

E-commerce websites: Four Hour Work Week

Internet Marketing Via Affiliation Partnership:

VMC Sattelite: A Dish Provider Affiliation. $120 anytime someone signs up through your link.

Hoodithin Weight Loss Supplement Affiliate. Commission based % of sales. Residual income potential.
If someone who clicks your link regularly buys the
product to lose weight you get commission for every
purchase the person ever makes.

TMI Wirless: Online cell phone provider.
$50 every time someone buys a
cell phone from your link. Most of their phones
are free. Just requires a 2 year term commitment
to any major cellular carrier.

Full Tilt Poker: $75 per qualified sign up!
Play Online Poker
Join at their affiliate section!

I hope some of you find parts of this list helpful. Here’s what I will advise

#1. Anyone can do any of the things I just mentioned. Most will try, not make much money and give up. If you want to make a decent amount of money doing anything it takes a hell of a lot of work. I spent 18 hours setting up a system this week that is now going to make me about $3.50 per day. Sounds crazy, like a waste of time, but that is $3.50 that comes in no matter what I do. 100% passive income now. Over the course of a month that will pretty much pay for my AT&T bill…. Forever….

So take the list ad to it what you will. Pick what interests you and sell out for that specific item. Focus all of your energy on learning everything you can about the product. Join forums, ask questions, read books, read blogs, read everything you can.

A college student once wrote a postcard to Warren Buffet asking for a piece of wisdom. Buffet responded personally to the postcard with the note, “Read, Read, Read” Full Story

Imagine how much easier it would to go to work every day knowing that you don’t have to. If you have the freedom to quit your job, to fire your boss, then you will have true freedom. A freedom worth fighting for.

Thanks for reading!

Jordan

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