ne of the reasons people have a hard time financially is because they spent years in Academic Education and Professional Education but learned nothing about Financial Education (money). The result is, people learn to work for money, but never learn to have money work for them. As you know there are three types of Income.

1. Earned Income; witch is Income from a paycheck witch is taxed up to 50%.

2. Portfolio Income; witch is Income from Paper assets (stocks,bonds,mutual funds) witch is taxed up to 20%.

3. Passive Income; Income from Real Estate such as raw land or buildings and Businesses - Privately held and or public and New to the Business category is Business on the Internet witch is taxed after all your expenses not before like Earned Income.

To become financially Independent you need to understand your personal financial cashflow by using a financial statement. A financial statement is made up of two parts. INCOME STATEMENT and BALANCE SHEET. The INCOME STATEMENT is made up of two parts and the BALANCE SHEET is made up of two parts. Your INCOME and EXPENSES makes up the INCOME STATEMENT. Your ASSETS and LIABILITIES makes up the BALANCE SHEET.

Lets take it one more step down.