The 3 Primary Ways to Generate Income

There are three primary ways to generate income. One is to work as an employee for someone else and get paid a salary or wage. One is to own a business. One is passive, that is, it involves investing money and earning a return on the investment.

The Job

For most people the easiest way to earn income is to get and keep a job. The advantages are that you need only invest limited time in a job in most cases – a set amount of time per day or week for which you are paid a salary or wage. In general you can increase earnings at a job three ways:

1. By staying with the job and earning pay raises granted for longevity.

2. By becoming more skilled and thereby earning a higher rate of compensation.

3. By working more hours.

There are things you can do to enhance your strengths in all of these areas. In future sections we will cover each of those in more detail.

Pros and Cons for a Job

The primary advantages of a job are that you have limited risk, your highest risk is being laid off; and you have limited investment – mostly your time.

One of the primary disadvantages of a job are that you are entirely at the mercy of an employer and there is no such thing as “job security”. All jobs are at risk in a modern competitive marketplace, which is where most of us live today. Another disadvantage is that you can only work so many hours and you can only earn a limited amount per hour, even if you are among the highest paid at your job. There are substantial limits on how much you can increase your annual income from a job.

Next we will discuss how you can enhance the three factors that influence how much you can earn from a job.

Wishing you success and prosperity,

Daniel R. Murphy
Helping People Learn to Build Wealth

Wishing you Success and Prosperity,

Daniel R. Murphy

Wishing you well,

Daniel R. Murphy
Educating people for building wealth, adapting to a changing future and personal development.