A money map refers to the several types of income you get. This enables you to be stable financially. You should have at least three income pillars in order to remain stable. It is often misconceived that salary is the only element of the income stream. This is not the case. When thinking about your different types of income, picture an African stool. An African stool often has three legs to make it stable. If it had only one leg, one would not be able to sit on it as it would fall. In the same way, you should have more than one income pillar in your life.
Different types of income exist. Namely they include: salary, passion income, passive income, residual income and recurrent income.
Salary is a fixed regular payment made by an employer to an employee. This is what most people use to cater for their day-to-day needs like transport, food and rent. Despite being an employee in a company, you can still have additional income streams as you will see in the next points of this post. You can give your employer the working hours of 9 a.m to 5 p.m and have another ‘side hustle’ from 5 p.m to 9 p.m in order to stop depending on your salary for everything.
Passion income is what you get paid after doing something you love. This refers to money generated from something that you love doing. It is not always related to your job. This may be mentoring, providing advice or even photography. Your passion income should pay for the lifestyle you want. You can use money earned from this for other things you want personally and are different from the daily essentials as you would have already used your salary to cater for those bills.
Passive income is an income received on a regular basis but with little effort required to maintain it. This income form generates money for you. You may write a book and get royalties or make a music album and money will be entering your account from sales of the product long after you completed making it. This income will continue to come in month-after-month or year-after-year, with little additional work by you. This means that you can essentially “retire” and still continue to grow your net worth.