Earn Income Or Create Wealth?
(134).webp "Earn Income Or Create Wealth? - Quiz")
In today's tough times, many people have seen their wealth get smaller.
In order to get more money, which strategy strengthens your financial safety net more permenantly?
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- 1.
- How is INCOME EARNED?
- A.
Income = Cash-in less Cash-out. (I get money by credit and working.)
- B.
Income = Revenue less Expenses. (I get money by earning more than I spend.)
- C.
Income = Cash less Costs. (I get cash by working.)
Correct Answer
B. Income = Revenue less Expenses. (I get money by earning more than I spend.)Explanation
Income is what I have left over after my costs are paid. Income = Revenue - Expenses.
Cash-in is all money coming in (loans, credit cards, wages, sales).
I may get money from credit cards or loans, but debt is NOT income.
Revenue is all money received or coming in later (wages, sales, commission, accounts receivable (debts owed to me))
Income is based on Revenue. One easy way to remember income: the government will (likely) tax it.Rate this question:
- 2.
Income = Revenue - Expenses, If you used EARN INCOME's strategy to get more money, you would
- A.
Give your savings to a banker or investment firm.
- B.
Work longer/harder, because you EARN by exchanging your time for money.
- C.
Ask for a raise, because INCOME's strategy is RAISE REVENUE.
- D.
Cut back, because INCOME's strategy is to LOWER COSTS.
Correct Answer(s)
B. Work longer/harder, because you EARN by exchanging your time for money.
C. Ask for a raise, because INCOME's strategy is RAISE REVENUE.
D. Cut back, because INCOME's strategy is to LOWER COSTS.Explanation
If I focus on earning INCOME then my only options for getting more money are to RAISE PRICES or LOWER COSTS. (This is INCOME's strategy.)
SHAPES FEELINGS. In a tough economy, cutting costs can only be taken so far, so focusing on this strategy may find me tired and discouraged.Rate this question:
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- 3.
How is WEALTH CREATED?
- A.
Wealth = money saved.
- B.
Wealth = money traded for value (I'll give you money if you make my life richer, fuller.)
- C.
Wealth = peace-of-mind.
Correct Answer
B. Wealth = money traded for value (I'll give you money if you make my life richer, fuller.)Explanation
Wealth is a fuller, richer life. It is measured not only in money, but in quality of life, including the satisfaction of being highly desirable because I make a difference in people's lives. WEALTH = MONEY traded for VALUE.Rate this question:
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- 4.
Wealth = money traded for value. If you used CREATE WEALTH's strategy to get more money, you would
- A.
Explore what government stimulus money you qualified for.
- B.
Rediscover your passion and hidden talents, because that helps you think of creative ways to help others.
- C.
Learn more to make you faster, more innovative, and quality driven than others with same job/business.
- D.
Waste your time, because only companies CREATE WEALTH; individuals EARN INCOME.
Correct Answer(s)
B. Rediscover your passion and hidden talents, because that helps you think of creative ways to help others.
C. Learn more to make you faster, more innovative, and quality driven than others with same job/business.Explanation
If I focus on creating WEALTH, then I will learn, innovate, and be WORTH MORE. (This is WEALTH's strategy.) Money is traded for VALUE and my value is measured in how I create fuller lives: save others TIME, save MONEY, and add QUALITY.
SHAPES ATTITUDE: People using CREATING WEALTH strategy are often energized, creative and enthusiastic - and more like to attract employers or new clients. I love to learn and BE WORTH MORE.Rate this question:
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- 5.
I want to focus my time on
- A.
Earning income.
- B.
Creating wealth.
Correct Answer
B. Creating wealth.Explanation
I want to uncover my hidden passions and talents and use them to make a difference in people's lives. This makes people want to come to me. They pay me money, because my work benefits them.Rate this question:
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- 6.
People who focus on CREATING WEALTH love to learn and help others. Companies are in the business of creating wealth and they prefer people who CREATE WEALTH (add value) over those just want to EARN INCOME (get a paycheck).
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
True. The strategy where I spend my time, shapes my attitude. My attitude attracts employers and opportunities to me. I will continue my personal journey at www.MostValuableMe.com.Rate this question:
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Current Version
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Feb 19, 2024Quiz Edited by
ProProfs Editorial Team -
May 04, 2011Quiz Created by
JayeLill