Young people have such a great advantage when it comes to making money. They're eager to build a future and they're still bursting with aspirations and creativity. They've got their whole life ahead of them but unfortunately the overwhelming priority wastes this opportunity and settle for a job. Before they know it, they're 28 years old, they're married, they've got two kids with one more on their way and they're up to their neck in debt.
Before I go ahead and share these 3 steps to making money while you're still young, I want to tell you a little about what money really is …
Did you know that getting a job and working hard is one of the most risky , useless and outdated methods of making an income?
Jobs were a crucial part in shaping the industrial age in the late 18th century. They provided people from rural areas with the opportunity of moving to the city and starting a new life. Times have well and truly progressed since then but it seems that society has not.
Anyone who's had financial success will tell you that it is much more beneficial to work smart than to work hard. If you want to make money, you need to know the difference between a residual income and a linear income. Linear income is where one is paid per unit of time that they've worked. If they want to make more money, they'll need to put in more time. If they lose their job however, they no longer have a source of income.
The most lucrative and secure way to make money is through residual income. Residual income is where one makes money over and over again from multiple sources for completing a single task or project. Some common examples of people who make a residual income are authors, inventors and entrepreneurs.
Here are the 3 steps to making money while you're young:
- Realise where there's money to be made: Just take a look around your home see how much money there is. Think outside the box and realize the potential. I'll bet you anything that you've got a pile of T-shirts in your wardrobe that you never wear. Chances are that those shirts made someone else really rich.
- Look close to home: Our best ideas often come from our own personal experiences or from something that we're very passionate about. There are several reasons as to why this and this should be considered before any market research is done.
- Figure out how you're going to monetize: Business can be broken down into two main areas- products and services. If you're idea is going to be successful, you must figure out how you're going to get people to buy your product or service.
This 3-step method is extremely simple but it makes up the foundations for making a residual income. If you're serious about creating a financially free future for yourself while you're still young and reliably unacmitted, then visit the EZ Dunking blog post for further depth on this topic.