Never work for money

You ought to never work for money. You ought to stop trading your time money. Gradually stop earning earn income and start earning passive income or portfolio income or both.

Most people that work for money are employees and they do not like their jobs. If they could, they would leave that job immediately.

If you are one of the few people that love their job, congratulation. Not many people can say that they enjoy their current job.

You ought to stop trading your time for money

A day only have 24 hours. If you trade your time for money, you can only get paid for the time that you work within does 24 hours. From a tax point of view you can only have 3 types of income. Earn income, passive income and portfolio income.

Earn Income

Earn income is when you trade your time for money. Such as that 9-5 job. You have to be there in order to earn that income. Earn income is the worse type of income you could have, This is the one that get tax the most.

If you are an hourly employee, salary employee, freelancer, consultant, contractor then you have earn income.

Many people think that is safe to have a job to earn income but the reality is that you can get fire at anytime.

Portfolio income

Portfolio income is when you get income from Capital gain, dividends, interest. Is when you have things like stocks. You trade your money or share of stocks for money. Basically your money make you more money. So you not longer trading your time for money with portfolio income

Passive income

Passive income is when get income from things like business partnerships, royalties, rents. The same thing, you not longer trading your time for money with passive income.

If you currently have earn income like a job, you ought to start moving toward earning passive and portfolio income.

That’s it.

Take a calculated risk.

Now, start and adjust as you go.