Pinoy Business Coach

In furthering our financial education, we need to understand the different types of income. The best-selling author Robert Kiyosaki puts it this way in very simple terms:

a. EARNED INCOME- produced by you physically working.
b. PASSIVE INCOME- produced by your money working FOR you.
c. PORTFOLIO INCOME- produced by paper assets, royalties or from a procedure.

Among the 3 types of income, EARNED income takes the most energy and is not leveraged (meaning there is a limit to what you can do, physically). PASSIVE & PORTFOLIO Income gives the person monetary benefits without having to work physically.

Much of what the Philippine school system teaches is about Earned Income. People are nurtured by the system to become employees rather than to take on the challenging hum drum of creating their own enterprising careers. It is not to say that being an employee and having earned income is bad, all I am saying is that, there is in existence other forms of income that one can grow into.

The mere presence of the other kinds of income is likened to discovering new destinations and areas of exploration. When we set goals as to where we want to derive our income from, having knowledge of the different kinds of Income will help us make wiser choices with our money and postponing our wants and become more smarter with our hard earned money.

It is also possible to derive income from the ALL the income sources. Like they say, the more the merrier!