For this article, I decided to write about the financial differences between the three social classes. Those classes are the rich, the middle class, and the poor. It is important to examine which class you stand in before you start your path to financial freedom. First, let's examine the general financial situations of the poor.

     It's unfortunate that there are many people out there today who cannot afford to put food on the table, but it does exist. Here's the financial situation of most of the poor: They only have one source of income, which is generally low and is almost completely used to cover monthly expenses. Now, if this person were to visit a financial advisor today, that financial advisor would tell him or her to reduce monthly expenses, and start saving a certain percentage of their income in a savings account. That's just a temporarily solution. The solution to upgrading a financial status from poor to middle-class is to create additional sources of income while reducing monthly expenses. The poor generally believe in job security, and because of that their earned income is usually their only income. If they were to lose their job, their only source of income would be wiped out, while they still have to pay their monthly expenses!

     The people in the middle class generally have an extremely high paying job. They could be managers, union workers, supervisors, etc. Their typical goal is to contribute to their 401K, keep paying social security, and probably save money in a stock portfolio for their retirement. This financial situation is fine for many people. Because of this, many of the people in the middle class become comfortable with their financial situation, and don't usually take risks when it comes to trying to better their financial situation. Sure, they may buy lottery tickets one the Power Ball jackpot goes over $100 million, but that's usually it.

     Now it's time to explain the financial situations of the rich. The rich have many different sources of passive income! Passive income is the key to becoming rich. Here's an example of a type of passive income that many of the rich have: Royalties. Every time an author sells a copy of his or her book, he or she receives money! That's considered a royalty. Every time an episode of "The Cosby Show" is played on T.V., Bill Cosby gets paid. Every time you buy a CD for your favorite band, the band gets paid. Now you can understand why many celebrities are rich. They also get paid for appearances and speeches.

     Donald trump has a source of income coming from each of his hotels. Plus, he makes money off of "The Apprentice", and gets royalties from his books. To become rich, many sources of income are needed. Royalties, Dividends, Real Estate, Stock Gains, etc. Don't worry; PassiveIncomeInfo.com was created to help show you the many different sources of income