The 3 Types of Income To Become A Millionaire

This article is written by Patric Chan, the author of WakeUp Millionaire. Discover his secrets of using the 3 components of Psychology, Opportunity and Mindset to become a WakeUp Millionaire… http://tiny.cc/wakeupmil


You need to do something to make money, regardless of taking a very small action or big one. Even if it is just sending emails - that's still considered as taking actions.

If you accept that fact, then it's obvious you're on the right track.

To create wealth and becoming a millionaire, you need to have a vehicle or platform.  I like to name it as Opportunity because IT IS an opportunity.

Obviously, there are plenty of opportunities to choose from today and it becomes "confusing" when you not know of your purpose.

Different opportunities will give you different types of incomes...

Income Today - This is the income that you'll need today and within the next 30 days. Basically, this is your life line - you need money right now to not only enjoy your lifestyle, but as fund for your journey to financial freedom.

You have to understand that there's no liberty to living frugal - you need to use your Income Today to give you the pleasure of what you can afford. You need to continuously reward yourself for taking actions to become successful.

Income Tomorrow - While making money for Income Today, you would also be planning for Income Tomorrow. Income Tomorrow is defined for income that you'll have within months and can be extended to a year or so.

It creates short-term passive income. For instance, you own a membership where people are paying you monthly fee.

Millionaire Income - This is where you can be free. You can choose when to work or not to work anymore. The biggest mistake that average people make (which keeps them from millionaire status) is simply not choosing the right Opportunity that can lead to this stage.

Bare in mind that Opportunity can change at any time. Just think it as the vehicle to get you from one place to another place, you're trying to get from your current level to a higher financial level.

That being, your focus is the destination and you'll choose whichever of the most suitable vehicle for you to get there.

In my years of making money and creating wealth, I've used at least 3 major Opportunities.

It doesn't mean the more you have, the more money you'll make. It's about choosing the right one and stay focus on it.

Financial Freedom in Two Simple Steps

Financial Freedom or financial independence is generally used to describe the state of having sufficient personal wealth to live a happy lifestyle, without having to work actively. Definition of 'happy lifestyle' varied in each individual. It depends how much you want. The more you want, the more wealth you need to create. Nonetheless, the formula to achieve it can be summarized in two simple steps.

(1) Create Surplus - Increase Income Reduce Expenses

As been known, create surplus is the first step towards Financial Freedom. Surplus is an amount left over when basic needs have been met. However, it is challenging especially for nowadays youngster. Reason being they are confusing between what is wants and what is needs.

Traditionally, immediate basic needs are food (including water), shelter and clothing. In modern life, transportation and communication have also categorized into the list of needs. Unintentionally, most of the time people tends to overspend on so-called 'needs' and put themselves into cash tied situation. Example:

• Dining out. Why not just enjoy home cook food?
• A bungalow. Why not just a cozy terrace or apartment? Renting is another option too.
• Branded clothes. Non-branded clothes are nice and comfortable as well.
• Luxurious car. Why not an economy one or an average one?
• Smartphone and laptop price can be varied from few hundreds to few thousands as well.

Think twice. Is all those really your needs or wants? Overspend here and there causing you have very little surplus, no surplus or even negative surplus with the convenience of credit card.

Increase income and reduce expenses must be co-exist in your financial planning. It can be done by having a proper personal budget. Overtime, you build up surplus and ready for the next step.

(2) Generate Passive Income - Create Money-Making Machines

Passive income is an income received on a regular basis, without or with little effort required to maintain it. Each tool that you used to generate passive income is your money-making machine. It can be any types of investment and/or businesses. One need to have more than one money-making machine as part of risk management to ensure smooth generation of passive income. One can declare Financial Freedom when their machines able to generate a total income that is greater than their expenses.

Most money-making machines require some sort of investment up front. This is where your surplus come into the picture. Great things almost always start small. Likewise in financial planning. Start with one money-making machine with your initial small surplus. As time goes, build it up, diversify and further build it up. You will definitely closer and closer to your goal - Financial Freedom!

Article Source: Financial Freedom in Two Simple Steps