MONEY SERIES: PART 75

By: Tarun Prakash Srivastava, Sr. Executive Editor-ICN Group

Vertical income (active income):

You know the equation of the vertical income which is as follows –

“Time X Qualification = Earnings”

The time is limited, and the probability of merit is also limited, and these two limiting factors limit your income, and as soon as you stop giving time or the investment of eligibility ends, your income becomes zero. In this way, this income is entirely dependent on you, your employed time and your ability to do your own work.

Horizontal Income (Passive Income):

Horizontal income spreads the sources of your income far, and sometimes its control also goes out of your hands, which means that if you want to stop your income after one time, it becomes impossible. Let’s understand the principle of Horizontal income through the following equation:

Take the working system of any established business tycoon for example. Imagine that a successful business tycoon system employs 100,000 people of varying qualifications, who invest only 10 hours of their twenty-four hours in the system of that business tycoon and earn their monthly income as per their skills. The equation will be like this:

Persons Time (10 hours) Abilities and skills Income
1,00,000 + 1,00,000 persons x 10 hours each

= 10,00,000 hours per day

+ All abilities and skills   = Unlimited income of the business tycoon

This example illustrates that if many people work for a person, all those people work only for themselves for only ten hours but for the person for whom all the people are working, they will build unlimited time. Since the consolidated qualifications, abilities, and skills of all the people employed are available to the system, the investment of unlimited qualifications, abilities, and skills is also possible in that system.

Thus, both skills and time are invested unlimitedly, and as such, the unlimited income shall be the result of that system. This income is always a safe income because if one of them does not even work or even does not invest his personal qualification one day; other people will work and invest their own skills and as such, no significant reduction will ever be possible in unlimited time, abilities and income.

Tarun Prakash Srivastava

The writer is the author of book ‘Science of Money’ available on Amazon.com in English at http://bit.ly/Science-Of-Money