Different ways of making money
Doing Manual Jobs
These people exchange time for money by doing manual tasks, or low-quality jobs, which need little training and education. They earn most of the time only salary. These peoples are numerous, uncompetitive, and easily replaceable. The most distinct characteristic of this job is that it does not improve much the know-how of people who are doing the job. Over time, they can gain some experience but their abilities are not highly valued in the market. The growth of human capital is low or almost nothing. Their accumulative knowledge and skills are not very competitive in the marketplace. The worse thing that happens in this situation is that those who do the manual job do not save enough money to invest elsewhere, or money does not work for them at all. This is one of the reasons why when people poor, it hard for them to get rid of it, sometimes for generations. We call it a vicious circle.
Doing Professional Services
These people exchange time for money, simultaneously they build up know-how, abilities, and gaining experience, sometimes they accumulate more practical data. It means, they make money and at the same time, their human capital grows. Some of them rise to be experts in the field and can charge a high price for their service. Obviously, professional services are more advantageous than an ordinary job. Professional service makes more money per unit of time and human capital growth is a bonus. Additionally, these professionals invest some parts of their income regularly to earn money somewhere else as stock, bonds, real estate, or in businesses. They get rich by working and by investing at the same time. Over time, their investment is getting bigger and they earn a larger amount of money through passive income. They have a comfortable life. Many of them are in the middle class to upper-middle class. However, those who work in this sector need to be highly educated, spent longtime training, gained valuable experience and professional certificates. They join professional associations to protect their privilege and update their knowledge and skills, as well as expand their opportunities. One disadvantage of doing professional services is that you must work to earn money, it is hardly run automatically at least at the beginning of the career. Therefore, if you stop working, you stop making money actively.
Owing wholly or a part of Business
Business is a system that many factors work together: people, machines, facilities, money, and other resources as a social network. It is harder to start, takes a long time to mature, and works in a very competitive market. Those who want to start a business must have or gather deep knowledge in the industry, take time and most of the time needs big upfront investment as sweat equity or financial or both. Knowing that more than 90% of businesses fail in the first year of starting, starting, and running a business is risky and challenging. However, the reward is worth the effort. Business can make BIG, really big money. If you work for your own business, you make money not only through salary but also profit and the brand you build steadily over time. It also can be automatically run by a team of managers without the involvement of the owners or investors. In the same token, you make money while you are sleeping or playing with family and friends or going on holiday. Owing business enhances people's confidence and status. They make BIG MONEY which gives them access to a myriad of opportunities in life, not only for themselves but for their children and grandchildren as well. The business is like a tree, standing firmly in society with a network of roots. Many families own businesses become the most prosperous families in society.
