There is a huge difference between “earn money make money”. Even though the words are used mutually, they are not the same. Knowing the difference between them helps you understand how to support your journey towards financial well-being.
Earning money is the result of exchanging your time for cash, payment or payment checks. You are earning money by working like a business owner, employer or customer for someone else. In this economy world, you make money by working for others like car drivers, hotel waiters or some other professional serviceman.
While making money is different from earning money because it is an option to work for earning a pay check. Typically, making money is associated with MLM (multi-level-marketing), making quick plans to get rich quick or other make money fast schemes.
What It Means To Earn Money
Earn money means when you spend your time and effort when you trade. In simple words you work for an hour, you get paid for an hour. It does not matter whether you are being paid by the hour or you get a monthly salary – yet you pay someone else in return for your time and energy.
When you make money, you depend on another person or another company for your living. What you earn is limited by the number of hours you work, regardless of the amount you pay per hour.
The point to remember that when you’re earning money, you are usually dependent upon some other entity – be it an individual, business, non-profit organization or government div – for the money that supports your lifestyle.
Also remember, time is limited and therefore the only way to earn more is to become more valuable per hour or with a higher salary.
Earning money is necessary for the living generation because money is the way our society works. In today’s time, earning money is compulsory for everyone’s daily expenses.
What It Means To Make Money
On the other hand, make money uses your time to create a product or service that continues to make money for you. It is like making money from your ongoing products or services. It does not depend on the exchange of more time for your money. In fact, you cannot limit how much you can make.
Earning money makes a person independent by selling his product or offering a service. These individuals are not controlled by any other superior person.
Making money can look like …
Launching a new or improved product in the market needs and try to sell it again and again.
Write it once and sell it again and again. In good condition for the rest of his life.
Coming up with an invention that you sell or license to a person or company and for which you receive an ongoing royalty.
Developing a product in terms of software that you sell or license to a person or company and for which you receive an ongoing royalty.
Writing a play that you license to a production company, who turns it into a TV show or movie.
Investing in rental properties and renting them out for more than the mortgage and other expenses.
Installing ATM machines in stores where you get a small percentage of every transaction.
Which Comes First, Earning Money or Making Money?
This phrase is visually important because people think “it takes money to make money”. If you are like this, then you are undoubtedly going to earn money first. However, if you believe that your money is not always required to make money, you may be able to create wealth immediately using what is referred to as “other people’s money”. This concept is called leverage.
In their career normal people start to earn money. They were completely focused on some age of their lives to earn money. Later they try to make money by offering the best products according to the market demand.
Why Is It Important To Know The Difference Between Earning Money And Making Money?
When you make enough money to cover monthly living expenses, you’ve entered financial independence. Financial independence means work is completely voluntary and optional.
Your goal should be to find ways to make money to regain back your time. If you believe it takes money to make money, then you’ll need to create a plan to use your earned money on money-making activities.
To achieve your goals, read how to supplement your income and how to invest to create wealth. Visit the financial marketplace to find the best products and services to help you make more money.
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