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You may be surprised to know this but there are different kinds of income and not all income is treated the same. There is earned income, profit, interest, dividends, rental income, and capital gains to name a few. One important distinction of how you make the income, whether it is received from trading time for income or whether the income does not depend on hours worked. The only thing more scarce than sound money is your time because you cannot…

There are only two things a person can do with currency either a person can buy things or lend currency out to others. If buying things with it is the chosen route hopefully assets are purchased. Check out my post on the importance of assets. However, if you want to lend it out, what should a person keep in mind? There are a few factors that can make a huge difference in how an investment turns out. If something happens…

In previous posts, I have mentioned that owning assets is a must for building wealth. An asset is something that puts money in your account. Assets are so important that, in my opinion, it is the only thing you should spend earned income on. I thought by sharing a short story it might help to drown out all the noise and provide a simple example of how buying assets can increase wealth. A long time ago in a small village…

In order to reach financial independence, you must improve cash flow. Most people increase their cash flow by cutting expenses because it is the easiest thing to do. However, you can only decrease your expenses so much. Eventually, you start decreasing your productivity and the things you enjoy. Instead, it is a great idea to focus on increasing income. The great part about increasing income is that you can do it infinitely as there is no cap on the amount…

You may have heard the saying pay yourself first. So that is exactly what the purpose of the wealth account is. So the objective is to make sure that you are saving a budgeted amount every month and generating a sizable return on that savings. A great way to do this is to set up a completely separate account. I like using crypto.com as there is the potential to earn high interest on your savings. In recent years the Federal…