DAY 8 of 30
5 WAYS THE RICH AND WEALTHY CREATE WEALTH
In previous posts on Money and Financial Intelligence , I started by laying the foundation on the nature of money and the ways of earning or making money and the two broad types of earned income (Passive and Active Income) you can catch up on these here;
7 WAYS OF MAKING MONEY
Further on, since the Rich and Wealthy do not work for money, but have money work for them, then we can reaffirm that the rich and wealthy (Investors and Business Owners) earn passive income- they create Systems, while the poor and middle class who are usually employees and Self employed continue to work for money and hence make active income.
I will take a quick look into the 5 Ways of Earning Passive Income, I will treat each of them in greater details in subsequent posts.
Follow me and see 5 ways by which anyone can begin to earn passive income.
1. Real Estate: Investment in Real estate is one of the major ways by which anyone can earn passive income. A large percentage of Wealthy people have assets in real estate. The basic income from Real Estate is called Rent. If you own high-net worth properties in great locations and you they are leased or rented out to tenants under a solid arrangement, then you can begin to earn rents for many years to come. In fact real estate is called the playground of the rich. Investment in real estate may vary from paid parking lots, residential properties or hotels to Event centres. Two major examples of people that play in this area are Donald Trump, an American billionaire and Dr. Dolf De Roos, a member of the board of directors at Avenues to Wealth International.
2. Automated Business: The Rich and Wealthy have been able to device a means of most times building from the scratch and at other times buying a successful Business System. An automated business simply is one which has been built over the years into a successful business systems. They are usually vary in size but are usually strong viable brands with business processes and concepts developed and established over the years. A business franchise like MacDonalds or Kentucky Fried Chicken KFC is an example of an Automated business. It usually takes an average of 5 to 10 years to build a successful Business System (and according to Business experts, this is still the first phase of its growth and development).However, you might buy a franchise of an already success business. Names that come to mind when you think of building great business brands are Bill Gates of Microsoft, late Steve Jobs of Apple, Aliko Dangote of Dangote Group in Nigeria etc. One major income from this is director bonus.
3. Paper Assets: The Income earned from paper assets is dividends and some time, bonuses and capital appreciation. Another great way to earn passive income is ownership of stocks, treasury bills and bonds. People who earn tangible income from this usually hold sizable shares of blue chip companies from which they begin to earn passive income. Ownership of stocks in this regard will usually be millions or billions of units. When you think of paper assets one major name that comes to mind is Warren Buffet.
4. Intellectual Property: Intellectual property has been and will continue to be a great way by which people rise to great wealth. This is where through a viable idea, in form of a patent or invention, a man continues to be earn passive income most times for the rest of his life. The minimum patent year for some inventions is 17 -20 years. The form of money earned from intellectually property is called Royalty. More popular forms of intellectual property are having Copyrights to a best-selling book, an A list song or Album or Movie. And with recent trend of technology one can strike it rich from royalty by developing a resourceful software or application. Here you want to think of web developers/ Founders of Tech Start up Companies like David Karp of Tumblr, Jan Koum and Brain Acton creators of Whatsapp. Also Musicians or song writers earning royalties from songs written years ago and J. K Rowling the writer of the popular Harry Potter books are example of people making wealth from Intellectual Property
5. Network Marketing or Multi-Level Marketing(MLM) : The Network Marketing Industry has produced more millionaires than any other industry in the world within the shortest possible time. As a matter of fact huge companies are now going MLM as they have discovered it’s a great way to move their products and services within a vast number of people. The network marketing industry has been around for over 50 years and it is continually gaining momentum. Great entrepreneurs like Richard Branson and Warren Buffet have been recently know to invest in some MLM companies Network Marketing is a great way anyone can create passive income even become financially free in the right company with the right MLM program and rewards system. It is a business model that helps the poor and the middle class move out of the rat race begin a journey to Financial Freedom.
At the end of this article, I share the exciting MLM vehicle I am actively involved in.
There are rare opportunities that combine some or all of these channels of creating passive income and sustainable wealth. If you will like to know more or participate in an opportunity that gives you access to play in all these avenues fill the form at the link....http://bit.ly/VqbOgh
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Join myself and our team at Avenues to Wealth as we work closely with 20 people who are ready to increase their financial intelligence, make extra monthly income of about $1000 or more, secure your space at the link. http://bit.ly/VqbOgh
(c)August 2014, Emmanuel Ayeni
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