In this video let's talk about other types of income that are possible.

There are very different ways to earn money.

Most people when they go to school and they go to college even they learn about the safe and stable

earned income where you basically trade your time to do something for someone else and they give you

they give you money.

It's regular salary income.

That's what most people understand.

It's mentally very easy to grasp and that's where everybody sort of starts.

Not many people start thinking about passive income Samite passive income and I'm not suggesting that

you push your child into some online business schemes.

Not at all.

But what I am suggesting is that they have to have all the options available to them and they have to

be aware of all the options so that as they grow up they can make choices based on more information

what's passive income and semi passive income essentially let's say you make a website it gets traffic.

That's passive income.

You know if you make money from that traffic and it's important to understand that almost all passive

income is also semi passive income because you have to put some work into it a website requires some

maintenance even if you make a YouTube video that you know even that gets you ad revenue and it seems

like you don't have to do anything while you do because you have to promote it a little bit maybe you

have to make a second video or maybe you have to answer some emails.

So yeah it's 90 percent passive but it's not 100 percent passive so there's always work in this passive

income businesses online.

There's a lot of work behind that that makes it semi passive very very seldom is it really truly passive.

And if it is you're probably making less money than if you added fuel to the fire so to speak and put

effort into it to grow it.

And so if it's semi passive usually passive income ideas are better earned money are more effective

when they're semi passive when you consistently fuel them.

Of course there is investment income.

That's something that your child will learn after making a little bit of money.

And if you explain to them how to invest that money intelligently so that the money starts working for

them and your child will and should learn about different kinds of business model.

There's subscription business models.

There's subscription like business model.

Very good example is the gardening or lawn care business.

Guess what even though it's not a subscription it's subscription like because the person who buys this

service that grass grows back every month or however you know at whatever interval.

So if as long as you do a good job they'll bring you back and you're going to make a lot of money from

the same customer.

And that's something to learn right that regular customers are amazing.

And maybe some something you do online will be ads or if you do e-commerce you'll learn it's you know

there's products that people buy once or this product that products that people buy once and again and

again and again and again.

So again the same customer can come back many times.

And those are so much better so these are all business elements that your child should at least be aware

of.

They're not going to learn all of these from any single business.

Every business has one or two of these that people can learn.

But it's important to talk to your children about these and just make them aware and at least in in

your business brainstorming.

These are things you should bring up to that they start at least thinking about it.

For example how do you make if you're making a product for e-commerce.

And we've talked about this.

You're making a product.

Can you make a product that is one time use.

OK.

Just one time use versus a consumable product that people consume and then you it again.

For example soap soaps are traditionally not hard to make at home.

There are simple recipes.

And guess what people use them soap ends.

People buy them again.

And so you get repeat customers and it's much better.

So.

And also what's interesting about soap is soap is used in every household.

Well almost every household in the world.

So you have a tremendous mass consumption product a billion multi-billion dollar industry and its repeat

mine.

So people come back to it.

So something as simple as that that people can make at home of course it's hard to sell because it's

so competitive.

But if we just if we just suspend that point for a second you see that just very very simple commonplace

products can have tremendous potential.

And as long as the business positioning is right you can introduce your child to such potential.

And another interesting thing to ask your child is when you're brainstorming like is it better let's

say to get a job for one day do a job for a day and earn $200 versus getting residual or passive income

from that and earning $1 a month for the rest of your life.

Or two dollars a month.

What will be the breakdown.

And of course everyone has different taste because you learn about well if you make that $1 a month

now in 10 years that $1 is going to depreciate it's not going to be as valued as much right to discuss

the merits of long term income versus short term income or what you can do with money upfront and getting

you know earning percentage from your money if you just put it into a CD and the rates and so all these

conversations stem from one another and they're almost Cascades style.

Once you talk about one thing it leads to the next thing leads to the next thing leads to the next thing.