Active income is income you earn through working, through spending your time. So if you work for a day, you get paid for a day. You work for an hour; you get paid for an hour. You work for a month; you get paid for a month.



Now, you can never be wealthy through active income. The reason is very simple because there's always a limited amount of time you have.

Even if you are a lawyer and you are a very good lawyer and you charge, let's say hundred bucks an hour. But still, how many hours do you have in a day? You have a limited amount of time so you can never be wealthy through active income.

Having active income also means one thing. At the moment you stop working, your money stops so again, there's no leverage, there's no scalability.

So in other words, you literally sell your time for money.

So, what makes a person earn more than another person?

For example, why a doctor earns so much more than a receptionist. Why? Why does one insurance agent make 20K a month whereas one insurance agent makes 2K a month? Why?

Some people say it's because of education, experience, age. No, it's not all those things. The one thing that matters is value. Its how much value you create.

Why does a doctor earn so much more than a receptionist? That's because a doctor can create so much more value. A doctor can save your life. A doctor can make you feel well. But a receptionist can only, take down notes, make coffee for you, and only do certain things of lesser value.

One insurance agent adds so much more value by being a problem solver to someone's life. The other insurance agent can only tell you what to buy. That's why they create more value.

So focus on things which create more value. If you think about it, there are only two ways to create value for your company. Number 1 is to increase sales, number 2 is to help the company to reduce costs.

By doing that, the company will make more profits. Ask yourself this question. What will make your boss want to double your salary? Not out of the kindness of his heart. But the only way to double your salary is for you to double your value to the company. Simple as that. So increase value, increase time.

How much income you earn is a reflection of how much value you create for people. So if you want to increase your income, you must increase your value, and it can mean the value you create for your clients, or how much you are worth to the business that employs you.