Greetings to the PH community, this time I want to share with you a topic that for many causes confusion and is the "passive income", for many people this term is one of the goals to achieve, but from my point of view there is no such thing as income that comes without doing anything, I know that for many people is valid to believe that just by placing money in a place this will give them an income with which they will never have to work and worse, they deeply believe that the rich have money without working.
Many people believe that money is produced only in central banks and then distributed to the population, this is not true at all, although central banks put money into circulation, it is consumers who distribute the money through the demand for products or services, in short it is only possible to earn money if you sell a product or if you provide a service, so fortunes accumulate, in some cases the money is transformed into a product but in the same way you have to do a job for it to generate profits.
people who are truly rich have managed to accumulate fortunes creating systems with which they accumulate money through the massive sale of products or on the contrary providing services to millions of people the most emblematic case is Amazon that leveraged his fortune in the sale of products using the web as a way to find and retain customers, on the other hand we have facebook that provides communication service to millions of people, the rich create systems that can then direct these systems that end up being are a kind of funnels that collect money from millions of people at once.
From my point of view the clearest difference I can notice is that financial freedom implies that a person managed to create a system that generates income to cover their monthly expenses, this system uses other people to sell a product or provide a service is where the money flows from the consumer to the hands of the entrepreneur, on the other hand the income that is generated from nothing or from a single investment is a belief that is not based on reality and that often confuses people who want money without working for it.
In conclusion, the systems are the ones that bring wealth because they allow you to perform an activity such as selling a product or providing a service to millions of consumers, so if you want financial freedom you can only achieve it if you create one of these systems.
created by :