Did you know that the average millionaire has seven different sources of income? If you are working over 40 hours a week with no additional sources of revenue and want to see seven figures in your financial statements, your financial goals may be far out of reach.
When it comes to making money, there are three different levels of producing wealth – trading your valuable time for money is only level one. Although this is the most common and basic way to generate income, it is also evidently the most inefficient.
Level One
As previously stated, the first level of creating income is the exchange of time for money. This level includes your typical nine to five job whether it be financial consulting, a marketing coordinator, or even a fast-food worker.
There is only a finite amount of time in a day which means that if your time is the only thing making you money, there is only a finite amount of income that can be made. Level one provides a stable means of income but because of its restrictions of time, it exposes its inefficiency.
Level Two
The second level of making money is where you begin to generate income from what you’ve earned at level one. At this level, your money begins to earn you additional revenue through the investment of assets, securities, or real estate.
Through the collection of dividends, rent payments, or buying and selling securities, the income you have already earned is able to grow and produce extra earnings. With level two, there is no restriction of time and supplemental income can be earned while you are sleeping! At this level, you are now working towards your financial goals much more efficiently since you are generating revenue from multiple sources.
Level Three
The third and final level of making money is a continuation and expansion of level two. This level requires having several different sources of income or revenue streams, with the option of having people work for you.
At level three, income can be generated from a variety of places – the time that you exchange for money, your investments, and now your potential businesses such as house cleaning services, lawn care, or investing in franchises that allow you to have people working for you. Having several sources of income such as these is a major key to building wealth and achieving your financial goals.
Where do we come in?
If you find yourself stuck in level one, simply trading your time for money, but have financial goals that you want to talk to a financial professional about, we’re here to help! We want to help you create additional sources of revenue and take you to the next level. With the help of a financial planner, you can climb out of level one and work your way towards achieving your financial goals.