5 Ways to Create Leveraged Income

At Habits for Wellbeing, we are focused on helping you realise that you matter and supporting you to create a life of balance and freedom on all levels (your time/energy, voice, money and relationships). Today I would like to introduce the topic of leveraged income. In this post, I am going to discuss –

  • Three Types of Income
  • Learning to Utilise Leverage
  • 5 Ways to Create Leveraged Income.

Let’s get started…


Three Forms of Income

There are three broad forms of income you can generate – earned, leveraged and passive. Let’s have a look at each in a little more detail.

  • Earned income is income that is generated by working. This form of income is generated by being an employee or self-employed and is paid immediately. Examples of earned income include – working a job, consulting, speaking, teaching or any other activity that is based on time/effort spent.
  • Leveraged income is where you do the work once and you get paid repeatedly for doing the work. For example – when an author writes a book once, they get paid every time the book is purchased.
  • Passive income is receiving income from assets you have created or purchased. Some types of passive income include – rental income from investment properties, business income (that is not from earned income), investing and savings as well as affiliate and network marketing.


Learning to Utilise Leverage

Utilising leverage is about working smarter not harder. The main differences between linear and leveraged income are –

  • Linear income is where you do the work once and you get paid once. For example – with a salary you work so many hours, you get paid for so many hours. With a linear income, when you stop your salary also stops.

Linear Income

  • Leveraged income is where you can do the work once and get paid many times. The income is not proportional to the amount of time you spend on the project or the service provided. With leveraged income, you are trading leverage for money.

Leveraged Income


5 Ways to Create Leveraged Income

There are a number of ways to create leveraged income. Five of them are –

  1. Using your intellectual property. By using your intellectual property you could you could write a book, create an online course, write a song or invent something. This is where you do the work once are paid over and over for what you created.
  2. Building a traditional business. No doubt you have heard of Microsoft and Apple. These are two examples of traditional business’s that have truly made an impact in the world and are truly leveraged for their owners and founders.
  3. Owning a franchise. As a franchise owner, you buy in to the systems and ideas of the franchise and then employ people to run the franchise. Franchises can cost any where up to $1million, so make sure you believe in the product/idea you are buying in to.
  4. Investing. By investing you are putting money in to something that hopefully grows. Some examples of investments include – stocks, real estate and bonds.
  5. Network marketing. Network marketing is a business and distribution model, where a company manufactures the product or service and then pays the consumer to refer a friend.


So there you have it, 5 ways to create leveraged income. After reading this information, do you have any questions? If so, feel free to write them below 🙂

If you are ready to reclaim your courage and take the next step towards freedom and opening your heartwhy not join our Toolkit?

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