Excerpt from Building Abundance; The Business Plan for Health Coaches -you can be happy, healthy AND wealthy
Many people make their money by doing a job and getting paid. For a health coach, that might be, hourly coaching. You meet with a client for an hour and they pay you for that hour. You might also work for a doctor in his office, he will pay you a salary and you will have active income. The amount of time and effort you put into a job relates directly to what you earn. There is a limit to how much you can earn by the hours in a day, month, week or year. Service based businesses generate active income.
With passive income, you do the work once and you get paid for it over and over again. You do not have to be working to earn money. This sounds pretty good! It is a smart way to do business, or to supplement your income from a service business. Unlike active income, where you are limited by the number of hours you work, there is no limit to the amount of money you can make with passive income. Some examples of passive income are covered in this program; Ebooks, affiliate, Ecommerce, etc.
Knowing the possibilities helps you to plan and know where your income is coming from.
So simple, yet so direct. Thanks Cathy– yes, I need to find a way to gave this income stream wit the books, ecommerce or by being an affiliate. Problem is knowing where to start.
Makes me think of the saying never put all your eggs in one basket. You must diversify your income streams. Great reminder Cathy.
Cathy, you are simply the best. I appreciate your wisdom and insight. Thanks for this.
Very clear distinction between two very different income streams. So many of us are so locked into the whole hourly wage mentality that we don’t even notice that there’s a real limit to the number of hours in a day and therefore to the amount we can earn. Residual income overcomes that limitation.