We cannot depend on Social Security, as we do not know for sure if it will be there for us when we retire.  Most people today don't have a pension, and most of us are not putting enough money away for retirement.  We're working long hours and have little to show for it at the end of the week.

The worst part is that after 45 years of working, only 5% of the population is financially secure when they retire.  The other 95%?  Well, most of them spent 45 years building other people's retirement accounts.

So what is the solution?

As a financial planner, one of the things I education my clients about is the difference between 'passive income' and 'earned income'.

Passive income - is money that you earn even while you sleep - even while you vacation! You don't have to 'come in to work' and you still get paid. Examples of passive income are: owning an apartment building (rental income), investment portfolios, and home businesses that offer Residual Income.

If you are a salaried employee (i.e. - you get paid by the hour or week), you are trading time for money which is called Earned income.  The problem with earned income is that there are only 24 hours in a day, so there is a limit to how much you can earn. The only way to earn more money is to get a higher paying job, work longer hours, or get a 2nd job.

Worst yet, if you suddenly get sick or disabled and cannot work, your income stops.

If you are a salaried employee please know that I am not suggesting that you quit your job (at least not yet!).  What I am saying is that there may be a way for you to keep doing what you're doing and increase your income (substantially!), and this may allow you to one day quit your current job and have the financial and time freedom most people only dream of.

So what is the key to wealth?

The key to wealth is leverage...

There are several kinds of leverage. One example of leverage is using other people's money (ie- the Bank's money) to make more money, such as when you buy a rental property for 10% down - you would be controlling a $100,000 property for only $10,000 of your own money.  Now that's leverage!

But not everyone wants to get into real estate, or can afford to.  Not everyone has the funds to put together an investment portfolio so that they can earn passive income.  The good news is that there is also another kind of leverage - Time Leverage.

Time Leverage is using other people's productivity to make money.  Almost all traditional businesses use time leverage (i.e. - companies hire employees, manufactures contract distributors, etc...)

There are only 24 hours in a day, so how do some people make over $1 million dollars per year, and some make only minimum wage?

The wealthiest people in the world became wealthy by using leverage combined with passive income.  Certain home businesses have BOTH leverage and passive income, and can be done with as little as 5-10 hours per week.

Best of all, having a home business can not only help you make extra money, but it can also help you save money...

Tax Deductions

Employees (vs. business owners or self-employed people), have very few tax deductions right now.

In contrast, by operating a home business, you can deduct business-related expenses, which are often things you are already spending money on (your car payment, gas for your car, cell phone, internet service, education, books, your mortgage or rent, restaurant meals and even your vacations if they have a business purpose!).  Your tax preparer or accountant can work out for you exactly what can be deducted and how much.  The bottom line is that a home business can be started for as little as a few hundred dollars, and you will probably save much more than that each year in taxes!  Not only that, but you will also be earning money in your spare time from your home business, which can go towards paying bills, saving for a vacation or college fund, or saving for retirement.

If the home business you select has residual income and leverage, you only need to spend 5-10 hours per week working in your home business. 

If you would like to know the name of a reputable home business that offers all these advantages, email me and I'll be happy to share it with you.

I highly recommend that everyone consider having 'multiple streams of income'. A home business that uses leverage and that has residual income is the best first step to building wealth and can lead to financial freedom (fire your boss!).  Once you are financially secure, you may then want to look at adding other 'streams of income' such as investing and real estate.