The “single income model” and “The multiple income model”, are two extremes that do nor require each other to survive. Nevertheless, they are representing very clearly two layers of out society. In my last post I talked about the Single income model. As we saw, the model is describing the lifestyle of the masses around the world.
Living based on this income model is economically problematic and fragile. As it bound its user to a single source of income, which make them bound the the will of their employer and position them in a complicated place when negotiating terms and salaries.
The logic is quite simple and do not require advance mathematics. Moreover, in an economy that constantly growth and is attached to a inflation (around the 3% a year), an individual will be required to increase his income for the sake maintaining the same lifestyle over the years. This is one of the foundation of the model that keeps the poor this way.
The rich from the other side, understood this principal. They are using a completely different model for their income. Their model can be called “The multiple income model”. It works on the same mathematical logic, allowing the rich to get richer.
The fascinating thing about this model, is that it does not require that the majority of the population will not use it. the existent of the single income model in a market just makes the user of the multiple income model more efficient and promise extreme stability in the long-term income.
As you potentially have guest from its name, this model requires to create for one multiple income from difference sources. The traditional way of doing so, is by investments in multiple platforms. For example, stock market shares, direct partnerships in a private business, investment funds, bonds, ownership of properties etc.
To start using such a model, a person that start without riches, will be required to maintain a constant job and slowly create himself other sources of income.
It is important to mention that in this model; more sources of income exist less dependence will have the individual on a specific source. Using this model, give flexibility and security to its users, as it is not bound to a specific market nor to a specific employer.
In the case of the rich, the amount of fix expenses is lower as they normally do not have to rent a property or take loans for survival, which automatically allow them to create more profit.
The switch of the masses to such a model is crucial for the creation of a better society and a better world. As I mentioned in my book “Back to ourselves” – Today, it is known and agreed that we have enough resources to maintain humanity as a species, while promoting the well-being of the planet and all its inhabitants. The reality we are still living in, exist mainly because the rich do not want the masses to get out of poverty, as it allows them to keep their power. Educated masses can get out of poverty without the approval or help of the rich. They just need to chose the right model of income.
How do you create your income? do you have ideas about how to switch from one model to another?
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