Many people have been programmed to go to school, get a good education, and go to work till you retire and die. This type of thinking is what keeps the working middle class and the poor class at the level of where they will always work the hardest, for the lest income.
On top of having lest income, they are taxed first and paid later. That is why when someone who may have a job, making $10 an hour, will normally bring home a check for $315 for the week instead of the whole $400 that they have put in for. This type of living will always keep the person trying to stretch and make it from one check to the next check.
Another area that people may believe is a step up, but it really is still at a disadvantage, are the people who are considered to be self-employed. This is where you will have the doctors and lawyers and people who specialize in a certain area, who depends on you for them to have a job to go to. There is nothing wrong with having these special practices. It is very well needed to help everyone out.
The problem with this area is that this is the self-employed are the highest taxed, being taxed on 86% of their income, and work the longest hours. In order for self-employed people to pay their bills, they have to get up and put in work to get a check. This is what is considered small businesses. There is a way that you can take your self-employed business and move it over into the big business category and can receive a tax break off this.
Passive income is where you can create a product or a business, and have it run without the need of you having to be there. For ex; a doctor can set up a practice and hire an accountant, book keeper, manager and employees to take care of the business, while you are off sitting at home or doing other things. This type of practice will put you in the big business category where you can get a kick back on taxes for everyone’s paycheck.
Another form of passive income will be to write (or have someone else to write) e-books and placed them on Amazon and other e-book sites. This has the potential to create residual income. Residual income is where the money will continuously flow in. This is also great to pass down from one generation to the next. Ex; Alice in Wonderland was written in 1865 by Charles Lutwidge Dodson under the pin name Louis Carroll. Although that novel was written well over 149 years ago, this novel is still bringing in income. Working income vs. Passive income, which one would you, chose?