What I want to talk to you about today is absolute income vs relative income. A lot of people when they give there business a go all they state is how much money they want to make. I want to make $100k. I want to make $200k. But yet they don’t state the time frame they want to do this in.
You see, there thinking in terms of absolute income when in actuality you should be thinking about relative income. Let me explain the difference between the two.
Absolute Income vs. Relative Income
Absolute income is basically how much money you make regardless of other circumstances. For example, a person that makes a $100k in a year makes more money then someone that makes $5ok in a year. This is absolute income.
The person with $100k obviously has more then the person with $50k.
However, if I was to tell you that the person that made $100k a year did it working 50 weeks out of the year working 80 hours a week. It’s like $25 bucks an hour or something.
Now, the person that made $50k a year did it working 4 hours a week. In terms of relative income that person did much better in terms of relative income. He made much more if you calculate the number of hours he put in to make that much money.
I’m not impressed when someone tells me they made $200k or more per year. What I want to know is how much time it took that person to make that much money.
Lets take Tim Cook for example. CEO of Apple Computer. He makes big money. I believe it’s about $1 million per year and with stock options even higher. Tim Cook is also knows to work at the Apple headquarters from 5 or 6am till 12 midnight. Tim gets paid well but he’s working long hours.
Even if your absolute income is $1 million per year doesn’t mean you have the lifestyle. If you have to spend 15 plus hours per day to make your money. Not interested.
If your using the correct internet marketing strategies it’s not about the money it’s about the lifestyle! If you can show me how to make $50k a year on 4 hours per week you have my interest big time. I want to know how to do that.
Again, if you want to show me how to make $1 million per year working 18 hour days. Not interested. If you can show me how to make $50k working 4 hours per week I am interested. Remember, we are not after the money we are after the lifestyle.
In order to achieve the lifestyle you must look at relative income. Absolute income can be great but when you look at relative income you will find quite often the person that makes less money there income is much higher.
You also have to make enough relative income to be able to live on. If your relative income is $1k an hour but you only work an hour a month it’s not good. That’s only $1k per month.
What I’ve found if your relative income is pretty high your absolute income is usually high as well.
The key to making high relative income you need to remove yourself as the income source. If your the income source and your income depends on you it’s pretty limited. You can only work so many hours per day.
The key is to not have you as the income source. In may case I remove myself as the income source. My income source are my blog, my social media, my relationship with my lists, MTTB, MOBE, my affiliate income, my other online assets. These things are up on the internet making money for me 24/7.
Relative Income – Work Smart Not Hard
It only takes me a couple hours per day to maintain these assets. So as a result, my relative income is extremely high.
For example, when you get all your assets built up online you can easily make $100 per hour or much more. If your only working few hours a day and your making $200k per year your earning $256 per hour. Not bad ha? This can easily be obtained if your follow my strategies.
Stop thinking about I want to make $100k a year. This sounds great but how are you going to do it. How many hours a day you going to do it? What is your relative income going to be? So this is the difference between absolute income and relative income.
Absolute income is just a number whereas relative income is a lifestyle! So keep this in mind when your doing some goal setting. How many hours per day do you want to make this in. Where after the lifestyle not necessarily the money. The money is great but the lifestyle is better! Looking for a six figure income online ? If your interested in working smart to achieve a solid relative income click below.