In general, when we talk about sources of income, we can group them as follows:
In my belief, the weighting and distribution of your income among the three shifts based on the following factors:
Age
Primary Income Source Stream (P.I.S.S.)
Passion
This assumes though, that you don't burn your money via unnecessary spending and you were prudent with the management of your monthly discretionary and non-discretionary expenses.
Discretionary expenses are in the shortest definition, the things you don't need.
Examples : Buying Manolo Blahnik's, Buying a Yacht, Buying your third cellphone
Non-discretionary expenses are in the shortest definition, the things you don't have a choice to.
Examples : Meralco, Manila Water, Maynilad Water, BIR, Utang mo sa Kapit Bahay mo
In my next entry, I'll show, or at least attempt to show, you how age, PISS and passion will affect your way to prosperity. I will also show you why PISS is the single most important (guerilla) concept you will learn as we go on with investing - GUERILLA STYLE!
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