Plan to use faster

If you plan on creating a plan to retire young retie rich you may need to update your vocabulary. If you change your vocabulary, you may speed up your ideas.

High pay job is a slow words.

Cash flow is a fast words.

Poor always advised, get a high paying job. Rich always advised, you want cash flow form assets.

Finding a high paying job may seem like the fast way to get rich at the start but in most cases it is the slow way to become rich in the end. Remember poor eared more money than rich at the beginning of their career but by the end of their lives, the gap between their incomes was as wide as the Pacific Ocean. In fact, very few people ever become rich via job, even a high paying one.

Let’s review the three different types of income.

Ordinary income 50%

Portfolio income 20%

Passive income 0%

Ordinary income in most cases, is income that comes from a person’s labor or work.

Portfolio income in most cases, is income from paper assets such as stocks, bonds, and mutual funds.

Passive income in most cases is income from real estate.

Before making any financial decision, it is very important to have competed provisional advice on any matter including taxes. What may be legal tax planning for one person could be a tax violation for someone else. The point of this section is to know the difference that words can make. There is substantial tax difference between ordinary income and passive income. As far as leverage goes, tax for most people are reverse lavage or negative leverage. A person who works hard for ordinary income has to work at least twice as hard as someone who works hard to earn passive income. Working for ordinary income is like taking two steps forward and then taking one step back.