The Two Stages Of Financial Life Of A Person

There are two stages of financial life of a person, First is when man works for money. In this stage, a person in order to earn money have to work for it. If the a person stops working income also stops. If you are now an employee or self employed, you are in this stage.In this stage a person earns "active income". 

The second stage is when money work for man. In this stage a person earns even without working! In this stage passive income is earned. If you are a business owner, or an investor then you are in this stage. Do you want to know how to be on stage two?
Image Source:

How Marketing Can Increase Your Business Sales

Photo Source:
Do you know how much does a company pay to advertise their product on TV?  I heard they pay hundreds of thousand to millions of peso for an TV ad.

Why pay those amount?

If you have a wonderful product and no one knows about it. How are you going to make sales? That's why marketing is important. People won't buy your product or service unless they know about it.

Many make the mistake of starting a business, they just sit around all day hoping sales will come. This is WRONG. You must never sit around and wait for customer to come. Rather, you must go out there and tell the people about your business or product- MARKET!

Two Types Of Income

There are two types of income, one is called active income and the other is passive income

Photo Source -
Active income is the the income you get in exchange of your time and labor. It means that you have to work in order of earn this type of income, if you stop working your earning will stop as well. An example of active income is a Job.

Passive income is the income wherein you earn whether you work or not. One example of an passive income is income you get from an rental apartment you own. 

What's An Asset?

Image Source:
Maybe you've read in my previous post (how to become rich) the difference between an asset and liability. I'll say it here again but I'll write some examples this time.

Asset is anything that puts money into your pocket.Here are some examples of an asset:
Real Estate Property
Paper Asset (Stocks/Bonds/Mutual funds)

Liability is anything that takes money from your pocket.Here are some examples of an liability:
Expensive Vacations
When I say "ANYTHING" it really means anything.

Take note that an asset to me can be a liability to you (vice versa) an asset to you may be an liability to me.

An Asset is an asset as long as it produces money or simply puts money into your pocket. If it doesn't, then it's a liability.

Let's use a car as an example:
Let's say (Person A) bought a car for his private transportation.Because of the car here comes expenses (annual registration fee,license,gasoline,insurance,maintenance, etc..)-since these expenses takes money from person A's pocket--his car is a liability.

(Person B) also bought a car and turn it into a taxi.The taxi earns enough that it covers the car's expenses and also provides income.--This is an asset.

So is a car an asset or a liability? The answer is it depends on how you will use it. Same goes with a boat,house,cellphone,computer,etc.