Earned the first money
The concept of making money often gets a bad rap because people earned the first money associate making money with get-rich-quick or pyramid schemes. Making money, however, means something entirely different. What it means to earn money You earn money when you trade your time and energy for money.
2. The Inca built a great empire—without the use of money at all.
In other words, you work for an hour, you get paid for an hour. Also remember that, generally speaking, your time and energy are finite resources. There are only 24 hours in a day and you only have so much physical and mental energy to go around. An additional distinction is that when you earn money, you only get paid once for every hour you work. Remember this as we explore the idea of making money next.
This is where it starts to get interesting and a whole lot more fun. What it means to make money Making money is when you use your own time and energy and a bit of creativity once, and get paid over and over and over again.
How to Make Money
It allows you to be independent, not dependant on someone else controlling your wealth potential on a regular basis. Making money can look like … Creating a new or improved product the market needs and wants that you can sell over and over again.
Writing a book and getting paid every time it sells, sometimes for the rest of your life. Coming up with an invention that you sell or license to a person or company and for which you receive an ongoing royalty.
Writing a play that you license to a production company, who turns it into a TV show or movie. Composing a jingle for a commercial where you get paid every time it plays. Investing in rental properties and renting them out for more than the mortgage and other expenses.
Investing in a parking lot where you rent out the same spaces day after day after day. Installing ATM machines in stores where you get a small percentage of every transaction.
Key Takeaways There are now more than 11 million millionaires in the United States. Wealthy people often quip that earning their first million was the hardest. Why is this the case?
Building an Internet marketing business that you put on autopilot that creates monthly income cash flow for you. Investing in dividend-producing stocks or other interest-producing financial instruments that pay out regularly. You get the idea. The point is that you do it once and get paid over and over and over for it. There is usually some, or much, work that must be done to ensure that the asset continues to produce a regular income on which you can live.
Which comes first, earning money or making money? Why is leverage so important? And leverage is a great thing.
Why do people need currency?
Joint venturing is a wonderful way to start making money. Hiring someone to write where to start learning to work on options for you while you develop relationships with advertising companies looking for jingles.
Borrowing money for a piece of real estate from a bank or other investor to help you invest in cash-flow-producing real estate.
Quite earned the first money, it is nice when you control the whole process, but using leverage to partner with someone in the beginning of your making-money career can be a great way to get started. So why is it so important to understand the difference between earning money and making money?
How to Earn Money vs How to Make Money
You can also choose, like most financially-free people do, to continue building the amount of money you make so you can take this extra money and do a whole lot of good in the world.
It may just make the difference between having an adult child who creates a financially success life and one who, at some point, has to come live at home for awhile to get back on his or her feet. What are you waiting for?
What I Earned My First Year of Low-Content Publishing
Go figure out how to make some money, will you! Elisabeth Donati is the owner of Creative Wealth Intl. She is an author of several financial literacy books, a speaker and coach and expert on financial literacy for kids and teens.