WA - Stepping Into the Right Education

Avoid Poverty - Stay Away from Conventional Higher Education

One of the most effective ways today to become poor is to go to college or a university. Why do I say this? Is this always true? No. Of course not, but for most people that do go to college to learn a profession or get a good job with high pay, chances are ever increasing. Here's why...

• You rack up a HUGE debt, especially when spending seven or eight years in school learning a specialized profession.

• Most people going through college become part of the middle classes. Today, the middle classes and employees on the higher scales are being taxed more than any other group of social classes, including the working poor, which are in the lower tax brackets.

• Most of the middle class folks are educated to depend on pensions, 401K and mutual funds - all of which are highly-taxable, and in the case of 401K, are double-taxed. They are also the highest risk paper assets you can get your hands on. People who know little about investing get stuck in these and call it "diversifying."

• The worst culprit is the education itself. From grade school on up, it fails to provide our youth with the right kind of financial education, thus producing a large sector of Western society with folks having poor financial IQ. In and of themselves, our schools are entirely made up of employees, with employee mentality. They teach what they know. Schools mandate what our young learn and this, in a nutshell, is how to be a well-rounded consumer and employee.

• Jobs are getting harder to come by. Many graduates holding AA and BA, and EVEN Masters Degrees are working minimum wage jobs that have nothing to do with their chosen profession just to keep a roof over their heads. When the supply overruns demand, these college degrees are not worth the paper they are printed on. Just ask thousands of homeless folks holding "will work for my meal" signs. Lower numbers of the unemployed are exaggerated in a number of ways to make it look like the economy is getting better. These figures no longer account for those who have stopped trying to find jobs and are not enrolled in unemployment compensation and other poverty programs.

My Experience at Wealthy Affiliate

The right kind of education comes with learning how to make a living in more lucrative ways. The best schools of thought are taught by entrepreneurs. Can you learn this in our institutions of higher education? It's rare, but yes, if you find the right courses in the right schools, but indeed, this is nearly non-existent.

You will have to look VERY hard to find this kind of education, at its best, in private and state-run colleges and universities. The best source for education like this is right here at WA and folks like Warren Buffet, Robert Kiyosaki, and other entrepreneurs who willingly share their secrets with aspiring entrepreneurs.

Who you hang around with has a great bearing on who you are or become. Hang in the universities trying to get upper education in business and economics will get you employee-biased curriculum, that is, you get the education from the standpoint of working for an employer.

Hang with entrepreneurs, and you get educated as an entrepreneur. You get this firsthand right here! It should not be limited to WA though, but WA offers the easiest route to get into the game and is indeed VERY lucrative. WA will not teach you how to set up a rental-type of passive income, but it does teach various forms of Internet marketing and royalty income (at least in the way of learn how to write)

There Are Three Types of Income

1. Active - that is, earned income, that which you must actively work for to make.
2. Portfolio - Stocks, Bonds, 401K, that is, capital gain (capital gain includes selling assets)
3. Passive - that is, income from Rents, Royalties, Income that requires little action.

Earned income is the least desirable type and will be briefly mentioned here. While earned income may be expedient, it should only be used to leverage from to get into and attain the other two forms. It is the worst legal way to derive income. Most people are engaged in the worst of this kind of income - employment. We will not get into that here. In this mode, you have the least control over your income with government and banking institutions siphoning out their parts before you even see it.

If you are an employee, you should step up to self-employment. Under self-employment, you do not have these deductions taken out and it teaches you to be responsible for these yourself. Don't worry - as is said, the company you work for pitches in half for social security. That's not true. YOU earned the income the company says is their share. YOU "pay rent" for your position in the company you work for. Don't let that fool you. Both shares in that game are yours and yours alone. You can be sure your company does not include that money in their tax reporting now do they?

Portfolio Income is better, but it comes with a LOT of risks. You must know what you are doing with this type of income. It isn't the best type of income to delve into, but it can be lucrative. Warren Buffet would be a good source of education for this type. Many highly-successful entrepreneurs do not recommend portfolio income, at least, as a sole form. It is good in moderation and as a form of income to synergize with passive. I am still learning about portfolio income so I have little to say about it except the basic things I've learned about it here.

Not all of it is risky though. It takes knowledge and education from the right people will help you turn risk, which is another term for "stupid" into informed decisions - calculated risks. There are right and wrong ways to go about portfolio income. One of the wrong ways is to let a investment broker do the work for you. There is a great way to remember the title of a "broker." Most of the common forms we see around on the consumer level are not financial advisers, they are salesmen, and chances are, they are "broker" than you are! Your best alibi is education from folks like Robert Kiyosaki and Warren Buffet. There are others.

Passive Income is, by far, the best to get into. It isn't the easiest to get started with, but once you do, you will be on your way, so long as you are properly educated in it and know what you are doing. On the one hand the US government considers royalties (income from the writing of books, software and other means of intellectual property) to be passive income, and yet it doesn't. I'm still learning about these phases and the complications here.

Passive income is that for which you initially work (sometimes hard) for but then takes over and continues to work even after you've long stopped. You've set a cash-cow going and it runs by itself with little intervention on your part.

Rent is considered passive income by far. It produces cash flow. This is why it's better to retain real estate as a long-term asset and derive this passive income from it. Flipping real estate falls under earned income. Cash flow is better than capital gain. Capital gain is better than earned income, under which, in the case of employment, the earner has little control over a portion of that income. Government and banking institutions take it upon themselves to get paid first from employer-issued income and pensions.

Passive income is the lowest-taxed form of income. Some of it IS taxable and some of it isn't. Earning income on the Internet, which is technically a form of passive income, and is what we learn here at WA, is not taxable in most cases. Some of it is taxable on the state levels (i.e. Connecticut and California.)

The objective is to use earned income as needed until it can be replaced with the other two types. Once you've gotten into the other two, lean heavy on the passive. It offers the very best protection for your assets and wealth. It is also the least taxed. Though some very wealthy company owners derive a salary from their own companies (thus an earned income) you can be sure most of their income comes from portfolio and passive incomes. Only the best forms and least risky paper assets are engaged with and they never diversify - they synergize their incomes.

Closing Thought

Passive income is the very best form of income you can derive. The great thing about it is, here at WA, you are learning how to earn passive income! Your campaigns articles, and everything else you learn here put you in the position to become an entrepreneur. There's a lot more involved with learning the ropes, but one thing is for sure, you are on your way and when it comes to self-publishing on the Internet, this is the place to be. In all of my experience of being on the Internet learning how to be an entrepreneur, I have yet to see anything that beats Wealthy Affiliate.

A portion of this blog came from a deleted one and has been re-posted with added content to restore an outbound link from my campaign.