2 Types of Income Every American Household should have…

2 Types of Income Every American Household Should Have… (You most likely have just one)

American households will continue to struggle if they don’t understand this. Generation after generation, American families struggle financially. But here’s why. Many of them focus so much attention and energy on creating just ONE type of income for their entire life. Even if they do focus on both types, it’s either not enough or it’s done poorly.

So I’m going to introduce you to the two types of income that every American family (or individual) should have. If your goal is to increase your money output with less time input, keep reading.

Fast Income: The Swift Current of Immediate Returns

The conception of fast income is akin to the familiar hustle and bustle of everyday work life. Whether it’s from a job, self-employment, or business ventures, fast income is money earned in the short term — often within less than 30 days. It’s the paycheck you receive after a week of work, the payment for a consulting gig, or the proceeds from a product sale.

This form of income is characterized by its immediacy and, unfortunately, its volatility. It’s directly tied to time and effort; you work an hour, and you get paid for an hour. If the work stops — if you fall ill, take a vacation, or face unemployment — so does the income. Despite this, fast income is the bedrock of most people’s financial lives. It provides the necessary cash flow for daily living and immediate expenses.

Slow Income: The Secure Bedrock of Future Wealth

Next, we delve into the world of slow income — also known as slow money. This form of income generation is like planting an orchard; it takes time to mature but can eventually provide a consistent harvest. Slow income springs from investments such as real estate, equities, stocks, bonds, ETFs, and Fixed Indexed Annuities (FIAs). The critical feature of slow income is its security and its ability to grow over time with minimal ongoing effort.

Though the returns might not be as immediate as with fast income, slow income has to compound potential and isn’t as tied to your daily grind. It requires strategic foresight and patience, but once established, it can pay dividends (quite literally) for years to come.

Bringing More Slow Income into Your Life for Time Freedom

Most Americans crave more than financial stability; they long for time freedom. The ability to enjoy life without being shackled to a never-ending workweek is the truest form of freedom. But how can one attain it?

The key lies in slow income. Here’s how you can initiate the journey:

1. Increase Your Earning Capacity: The first and obvious way to increase your slow money is by increasing your fast money income. With the surplus and excess, you’re able to allocate this to the slow money side faster. To increase your earning capacity, you have to get highly niched with more knowledge & competitiveness. OR, you have to change to a completely different opportunity that has higher elasticity for income potential. For example, it’s harder to increase your earning potential as a cashier as opposed to being a nurse.
2. Leverage Other People’s Currencies: The other way around is to introduce some expertise and knowledge in a particular investment strategy. In a way, this will sound very similar to the first point above. Instead of putting more time into the same activity as your fast income, invest some time actually understanding different assets and investments. A good example of this is in real estate. Say you invest a few hours in learning how real estate investment works. Because of your newfound knowledge, you’re able to identify opportunities that others can’t. You have opportunities but you can’t engage in them because you lack the monetary capital. But, what if we brought in a partner who does have the money? They might be looking for just the same opportunity that you found. Wouldn’t it be reasonable for you two to work together? Subsequently, you’re leveraging other people’s resources. But so are they. They’re leveraging YOUR knowledge and expertise resources. Together, you’re able to create slow money — faster.

Over time, you want your slow money to overtake your fast money. That way, much of your income is generated independent of your time. Your time is now more valuable because of a wiser decision to focus on slow-money income.

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