Choosing the right path is necessary to achieve success.

[Muba20]

We all dream of becoming rich in our lives, but some can become rich, while most fail. We all try, but some are on the right track and some are outside of the track. For those who try outside the track, it is definitely impossible to achieve that goal.



There has been a lot of discussion about types of income ‍and I'm sharing it again. In real life, there are 3 types of income. 1. Active income 2. Passive income and 3. Portfolio income.


Active income:

Active income is a type of income where someone gets money directly in exchange for their hard work. Maybe someone gets money directly by engaging in a job or any profession. Maybe it is a business. That is, the work in which there is a possibility of getting direct money in exchange, we can consider it as active income.

Passive income: Generally, it refers to any work where a person does not actively participate in the work, but he gets money. Which is not directly related to work, but he gets money.
Passive income can be a source of income. Various types of government benefits such as unemployment benefits can be received by those who are unemployed, and those involved in a partnership business can get a share of the profits from there.

Portfolio income: This type of income comes from investing the money earned by an ordinary individual. For example, someone can invest in an investment platform with the money saved over a long period of time. It can be stocks or crypto investments or anything else.

To become rich, portfolio income is the most important of these three types of income. I think this income is the most important for those who want to become wealthy.

Active and passive income cannot make you very rich, but if you focus on portfolio income by accumulating assets from your investments, then you will be able to benefit the most and be able to achieve your goals. Many people think that they can become rich only by accumulating money without investment. I just know your thoughts by which type of income one can be rich man.

[freedomgo]

I think most of us who aim for success in life have to start from scratch.

If we weren’t born into wealth, we can begin by earning active income, over time, once we’ve saved enough to start a business, we can transition to managing our own venture. of course, it’s still technically active income, but the difference is you’re no longer living paycheck to paycheck since you’re in control of your business. As it grows, you’ll eventually reach a point where you don’t need to work actively anymore, but you’ll continue earning significant profits from the business.

The final stage is portfolio income, which aligns with the popular saying, “Let the money work for you.” This is similar to how Warren Buffett and other billionaires have built their wealth over time. Of course, this can also apply to crypto investments, where your money can grow passively as part of a diversified portfolio.

[kotajikikox]

I think most of us who aim for success in life have to start from scratch.

If we weren’t born into wealth, we can begin by earning active income, over time, once we’ve saved enough to start a business, we can transition to managing our own venture. of course, it’s still technically active income, but the difference is you’re no longer living paycheck to paycheck since you’re in control of your business. As it grows, you’ll eventually reach a point where you don’t need to work actively anymore, but you’ll continue earning significant profits from the business.

People not born into wealth typically have similar plans or path to success. First get a good job that would allow you to not only get comfortable in life by allowing you to pay bills easily but also allow you to save some money. This saved money will be then used to like you said establish a business. But the thing is some people do not want to quit and focus on the business they want to keep actively working while having a business on the side. Here is where passive incomes come in handy. Passive source of income allows one to not actively focus on the business but profit still comes in. Best example of this is rental property. That would be the ideal situation of any breadwinner, actually.

[Die_empty]

Active and passive income cannot make you very rich, but if you focus on portfolio income by accumulating assets from your investments, then you will be able to benefit the most and be able to achieve your goals. Many people think that they can become rich only by accumulating money without investment. I just know your thoughts by which type of income one can be rich man.

It depends on your definition of being rich. Active income can make one rich if it is a high paying job and the individual has a good saving habit. There are people who earn thousands of dollars monthly and with that they can become rich if they are prudent in spending.

However, investments are the best means of building a lasting and sustainable financial flow. One can be sacked or retire from a high paying job which will cut the revenue flow. That is why it is important not to depend on your job income and always seek ways to invest your savings in profitable ventures.

[Solosanz]

I disagree, active income could make you very rich, as long as you make a looooooooot compared to Average Joe. Portfolio/passive income do make people become very rich as long as they did right, unfortunately not many people born from rich parents.

and those involved in a partnership business can get a share of the profits from there.

That's portfolio income, do you think you didn't invest any money in someone business? there's no business will give you money for free.

It's better if you not separate between passive income and portfolio income, both are same thing because you get money without much effort.

[stadus]

I disagree, active income could make you very rich, as long as you make a looooooooot compared to Average Joe. Portfolio/passive income do make people become very rich as long as they did right, unfortunately not many people born from rich parents.

In general, it doesn’t. That’s why truly wealthy people are usually those who own businesses or are investors.

Of course, everyone has different standards for what they consider "rich." Some may feel rich with a $1 million net worth, while others might not consider themselves wealthy until they have billions.

But if we measure richness by monetary value, billionaires are the ones who stand out, and they typically earn their billions through their businesses. Just like the people on this list most of them own companies and are CEOs. That’s where their wealth comes from.

[Muba20]

and those involved in a partnership business can get a share of the profits from there.

That's portfolio income, do you think you didn't invest any money in someone business? there's no business will give you money for free.

It's better if you not separate between passive income and portfolio income, both are same thing because you get money without much effort.

It is true that passive income is similar to portfolio income. If you look at the source of these things, you will not find any discrepancy. But a slight difference can be made according to the type of investment. Portfolio income comes from investment platforms like interest, dividends and capital gains, where the investor does not have to do anything. He will easily get profit from there after investing. Moreover, there is equal opportunity for everyone in this investment. Investors of any level can easily accept this opportunity.



References

[Free Market Capitalist]

Active and passive income cannot make you very rich, but if you focus on portfolio income by accumulating assets from your investments, then you will be able to benefit the most and be able to achieve your goals. Many people think that they can become rich only by accumulating money without investment. I just know your thoughts by which type of income one can be rich man.

You just say that because you think it and that's it? It seems to me that you are one of those who have a lot of opinions about getting rich but have a net worth of like $20. That's if you don't have a negative net worth.

Of course active income can make you very rich, look at professional players in the NBA or NFL for example. As for passive income look at Robert Kiyosaki.

And when you talked about the portfolio you could have talked about bitcoin.

[TheUltraElite]

Passive income might be a good option too if you are investing in businesses having a good run. For that you would need to expand your vision to many mainstream companies. Stocks in such companies would go into the portfolio income and that also is a good option.

What I understand is that these top net worth people made breakthroughs in some sectors, most people will not reach them. Instead what we can do is grow the wealth through savings, investments and earning from a decent job. This will help support the next generation and they can continue doing the same. That is how the generational wealth can increase but it is a long process.

So better to keep that "to become rich" to "to become successful".

[Swordsoffreedom]

We all dream of becoming rich in our lives, but some can become rich, while most fail. We all try, but some are on the right track and some are outside of the track. For those who try outside the track, it is definitely impossible to achieve that goal.

Does anyone agree with me that to achieve success, choice is more important than effort? If we choose the wrong path, no matter how hard we try, we cannot achieve success. But if we make the right choice, it will not only help us succeed but also save time, effort and help us succeed faster. That is why many people have high education and full knowledge but still cannot succeed. On the contrary, there are some people who do not have a high level of education but succeeded earlier.

To be successful we need to make efforts, work hard, but just making efforts and working hard cannot guarantee success, we need to make the right choices.

[Porfirii]

We all dream of becoming rich in our lives, but some can become rich, while most fail. We all try, but some are on the right track and some are outside of the track. For those who try outside the track, it is definitely impossible to achieve that goal.

Does anyone agree with me that to achieve success, choice is more important than effort? -snip-

Yes, choice is important, but effort is too, and we should still take into account that chance plays a key role when it comes to portfolio income compared to active income.

For many people, becoming rich is a matter of taking risks and having good luck, which could be considered as the right choice, but if they took risks and lost their money instead on focusing on working hard and getting a stable source of income but not rich, then it would've been the wrong choice.

So, the nature or the choice (good or bad) can only be weighed in hindsight. Many people talk about active income like the wrong decision, as if it was so simple to generalise. The right choice is the one that works for you.

[Dr.Bitcoin_Strange]

Every millionaire or billionaire took path in all of this three stages of income, success or riches is a product of growth and growth starts from a ground level before you see it go boom to the top.  For you to invest and have a portfolio, you need to do something that can give you that first income and if you have vision to acquire more wealth, riches and greatness, you then put your first income into other things that will take you to that goal you want. That's why you will hear some rich men say, "I once worked for that company before I resign to start mine. "

[Alone055]

I don't agree with the statement that one can only get rich through a portfolio income because there are living examples of people being extremely wealthy with active incomes. There are different stages and types of active income, and just because a normal person working 9 to 5 in an office doesn't earn enough, it doesn't mean active income can't make you good money.

There are people running multiple businesses, or even doing jobs that earn them way more than what they need can become wealthy over time. People in sports earn way too much money; some earn even more than businessmen in playing professional sports, and this makes your statement about people not getting rich through active or passive incomes.

Basically, all these come in order. You acquire an active income at first, then create a portfolio with money that you save, and also start having passive incomes when you have enough money to buy properties and stuff and earn rent or commission on them, etc.

[rodskee]

I disagree, active income could make you very rich, as long as you make a looooooooot compared to Average Joe. Portfolio/passive income do make people become very rich as long as they did right, unfortunately not many people born from rich parents.

yes active income can make you rich since you will have enough or maybe even more money left even after all your bills have been paid but active income is not permanent i find it to be very dangerous actually even a stable job should not make you overly confident because you can get fired or the company you work for can shut down or so many other things that could disrupt the flow of income so better to have more than just one

and those involved in a partnership business can get a share of the profits from there.

That's portfolio income, do you think you didn't invest any money in someone business? there's no business will give you money for free.

It's better if you not separate between passive income and portfolio income, both are same thing because you get money without much effort.
[/quote] a business partnership can actually be passive income if you are not actively running the business yourself portfolio income comes from investments portfolio income is from interests and dividends those are the differences.

[Findingnemo]

You can become rich by doing just one business or bunch of business, it doesn't matter, all that matters is that generating revenue or not. Financial success is obviously based on skills but there are many factors including luck plays a part so we have to do what we can do and don't expect things to change overnight, just fix that you are on very long journey.

[Roseline492]

For me the right part is having all the ways you have explained that's the easiest way of becoming successful, so actually this is not something of selection whether someone will pick one and leave the other two, is very much possible to just pack them because passive income can be any work including an online you did not do much work, so someone can still have an active income and still do the passive, portfolio is also included because as you are getting from passive and active income that is how you are building your portfolio, but if you choose only one then it could be a wrong partway because there wouldn't be any diversification.

[Davidvictorson]

Active income:

Active income is a type of income where someone gets money directly in exchange for their hard work. Maybe someone gets money directly by engaging in a job or any profession. Maybe it is a business. That is, the work in which there is a possibility of getting direct money in exchange, we can consider it as active income.

Whatever type of income you think you need, we should strive to have a stable income. And a stable income comes from having a real job or running a real business. Without these other types of income are almost guaranteed not to flow in. The stable income is the one that makes it possible to save to start or learn a side hustle. It is also the one that makes it possible for you to have some money for investment. Do no kid yourself, a steady income is a lifesaver. It make not make you rich in the short term but it is sure to make you rich eventually.

[coin-investor]

Many people think that they can become rich only by accumulating money without investment.

It never will, with the growing inflation and currency losing value. its not enough that you accumulate money through working from 8 to 5; it will catch up on you.
Investing in an industry that you are familiar with and educated in is the best way to create a roadmap for success; its not only about investing; its investing in an industry you are capable of conquering. Do not just enter an industry because its popular; you can't ever be on something you do not belong to.

[Egii Nna]

Active and passive income cannot make you very rich, but if you focus on portfolio income by accumulating assets from your investments, then you will be able to benefit the most and be able to achieve your goals. Many people think that they can become rich only by accumulating money without investment. I just know your thoughts by which type of income one can be rich man.

All types of income can still make you rich; it just depends on the type of approach you give to your income, because you can never become rich by focusing on only a single type of income.

There are many things that need to be considered when talking about wealth or becoming rich. For you, that involves an active income method of getting money. You need to be smart and have new innovation strategies for your business or services you render. This will definitely increase your income with time, and you cannot still get that wealth without getting another source of income, which you will be ready to choose a passive income, because that is the only source of income that will bring you money without total involvement, so that will help you to get more income and still focus on your active income or portfolio income. That is why you will have to be very smart before you can get rich. Because talent won’t make you rich, knowledge alone won’t make you rich, but consistency will.

That is why I always advise people to be consistent in anything they do, because it is the only way to be successful in life.

[tabas]

Active and passive income cannot make you very rich

Actually, passive income can. And that's the reason why an investor is able to invest into other things when there's a passive income that's being generated monthly or quarterly. That's what we want, more freedom and the definition of being rich depends on who's looking at that description. If someone looks on what being rich is by the wealth then that's it. But time freedom is also considered rich.

but if you focus on portfolio income by accumulating assets from your investments, then you will be able to benefit the most and be able to achieve your goals. Many people think that they can become rich only by accumulating money without investment. I just know your thoughts by which type of income one can be rich man.

Those people that are thinking of being rich by accumulating more money and doesn't save it, they simply are saving it. But those that are saving to invest, they're the ones that are likely to get rich. And there is no need to choose to any of it, whichever is generating us money either of three, they're all good choices and someone has to have them to become rich.