I work as
a salesperson. Since I became a full time Insular Life Financial Advisor, I earn from every issued policy application that I am able to close, both from initial and renewal premiums for up to a certain number of years. That is my ordinary income. Also called as active income, it is man working for money.
A couple of weeks ago, I received an email from Insular Life notifying me of dividends from my small investment allocated on the Global Multi Asset Income Paying Fund.
And just today, I was surprised to find out that the value of the residential lot we purchased three years ago at pre-selling rates, payable in three years at 0% interest (talk about great deals!) have gone up by 25%!
These are our portfolio income.
Recently, with Insular Health Care and InLife Store, I am an affiliate marketer. I promote simple issue products available online, shared on my social media, and when someone makes a purchase using my unique affiliate link, I earn a small commission.
And with Insular Life's Recruitment, every time I have a recruit who passes the licensure exam and gets coded, I earn a referral bonus. In addition, I get a percentage from my recruits' closed businesses for the first 12 months, which is another bonus from Insular Life.
With regard to my personal production, aside from my commissions, as long as I meet the required number of submitted policies and persistency rate, I earn a Persistency Bonus every payday, also from Insular Life.
These are my passive income.
This made
me realize what Robert Kiyosaki was referring to in his book Retire Young Retire Rich
about the three kinds of income.
Three Kinds of Income
Ordinary Income
Ordinary
earned income is you working for money. The more you work, the more you earn.
You exchange your precious time for this kind of income. This income earns in
the form of a pay check. When you ask for a raise, bonus, overtime, commissions,
or tips, you are asking for more of this type of income.
Unfortunately, this is the kind of income that many of us only know of. And very few people get rich through ordinary income. Remember that every time you get a raise, so does the government.
Portfolio Income
Portfolio income is generally income from paper assets
such as stocks, bonds, and mutual funds. A vast majority of all retirement
accounts are based on future portfolio income. In my case, I have started
building my portfolio income through the ordinary income I earn.
Passive Income
Passive income is income from a business, affiliate sales, real estate or it can also be a royalty income
from patents or for use of your intellectual property such as songs, books, or
other objects of intellectual value. This is money working for you so you can
use your time in doing something else you love, or sometimes even enjoy the art of doing
nothing.
While You Work For Money, Let Money Work For You, Too
In 2018, after 15 years of being employed, I quit my job before my 36th birthday. But I never retired from work. Instead, I chose a job that does not feel like work. How so? Providing content through this blog is part of my "job" of giving value. As I write this now, it is 10:54 pm. I can do this tomorrow, or next month, because I do not have a deadline for this. And yet, here I am, wanting to finish this tonight after spending the whole day engaging with clients.
To add, the people I know who love what they do never retire either. Think of doctors for example. I remember one time while we were in Nueva Ecija on a weekend. My husband, who is a surgeon, received a call from a hospital in San Fernando, Pampanga. He left at 7pm, drove for two hours, did an operation, and was back in Ecija with us past midnight. No dragging of feet needed.
Long story short, work for as long and as much as you can. There is absolutely nothing wrong with that. But let your money work, too, even harder than you do. Remember that money does not sleep, get sick, or go on vacations. It works even while we sleep.
Use your ordinary income to grow your portfolio income. And look for ways you can earn passive income.
Insular Life Provides Me With More Than Just One Income
Writing this post made me realize that my work as a Financial Advisor with Insular Life provides me with multiple income streams. Aside from the ones mentioned above, there are even regular sales drives for additional bonuses.
True enough, love your business, and it will definitely love you back.
P.S. If you want to try being an InLifer, we are open for part time and full time Financial Advisors. If you are currently employed, you can start doing this as a side hustle. This used to be my side hustle back in 2013 and fell in love with it. You can email me at financialplanningforpinoys@gmail.com and I can walk you through the process, regardless of where you are in the Philippines.
P.S.2 Have extra funds sitting in the bank, and want to start receiving monthly dividends from InLife's Global Multi Asset Income Paying Fund? Email me at financialplanningforpinoys@gmail.com to know more.
To financial freedom,
Joan
