Introduction
Source
To be rich is different from being wealthy; wealth creates riches whereas riches doesn't create wealth. One can be loaded with lots of cash but isn't wealthy. Wealth is a mindset, a personality to me. So long as you still have those ideas buzzing in your head on different ways to make money and you're willing to work towards them, you're wealthy even if you may not be with cash at the moment.
Hello guys, today I'll be talking to you about a few tips on how to grow your wealth.
It has somewhat become a general theme that you need at least 3 streams of income to be financially stable, especially in our beloved country. This is no lie but here, I'll be showing you the three different kinds of income there are and these are the areas you should focus on building:
- Active income
- Passive income
- Portfolio income
Active Income
Source
You're in your office on a Monday the 29th of any month, the month is about to end and you're expecting your phone to buzz, finally, it does, you pick up your device and read what's on the screen; its a credit alert from company XYZ where you work, hmmm, a sigh of relief and some excitement, you've just gotten your monthly salary. Well this is what i call active income or earned income. You need to be there, doing something to earn something actively.
Passive Income
Source
Having worked so hard for so long, you finally get enough money, some extra money you've been keeping aside for a while now, and you decide, Oh! Let me build a house, one that I can rent out to someone else. You do just that, and after a while, someone comes and rents the place to pay you on a monthly basis. Well, this is a form of passive income, where you don't really need to do much, having the initial necessities, the money comes in even when you're not actively working for it or you're not physically present.
Portfolio Income
This can come in the form of dividends from the stocks you might have invested in, or from bonds where you get a certain return on investment in a certain period. For instance, you invest in government bonds a certain amount, $xyz and you're to get a certain amount $x, as returns for your investment after a certain period.
Conclusion
Well, I think working on these three areas can set you on a path to financial freedom. I see financial freedom as being able to sustain your lifestyle even when you stop working now.
Thanks for reading through, God bless.
Yay! 🤗
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