As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Value Investing
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Friday, 26 January 2007

3 Possible Income Streams

Before we could create wealth, we have to be aware that there are 3 possible income streams

  • earned income
  • investment income
  • passive income
Earned income is the most common stream for many people, you go to work and get paid salary every month. You trade your time, talent, capability, and energy for income. If you do not work, you don't get paid.

Investment income is the income stream we receive when we invest in asset class such as stock, bond, or fixed deposit. In another word, we trade money for money using our talent, time, capability, and energy for income.

Passive income is the income stream that comes from an income source that regardless of whether or not that you are working such as:
  • Profit from business as a business owner
  • Rentals
  • Royalties
  • Franchises
Currently, I am working towards increasing wealth through investment income and target in 5 years time that I will not need earned income for a living.

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