MODULE 2

EARNING/INCOME
Prepared By:
Let’s start the Prof. Katherine Alon-Rabbon, MBA
lesson!
 01
What is
EARNINGS?
Earnings
● These are money obtained in ● It is typically referred to after-tax
return for labor or services. net income. It is gaining money
These are incomes derived from by working, selling products and
investments or products. or services or receiving
investment returns.
● Earnings are the amount of
money you make from doing a ● A person’s career choices,
job and are usually calculated as ability to find employment and
savings and investments less ability to advance; determines
expenses. his or her expected earnings and
standard of living.
 Business Ideas
In this video, Chinkee Tan
shared some business ideas
that you can start and earn.

Always remember, that even

if were in the middle of
problems and clamities there
will always be an opportunity.

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ch?v=XRKDq9enuKI
 01
HOW to Earn?
As a student, what will you do in order for you to earn money? Here are the three
(3) ways to earn:

Sharpen Skills Entrepreneurial Mindset Career Planning

 Sharpen Skills
Earning is the very first step in your
journey to managing your money wisely in
order for you to build a successful future.

Therefore it is only imperical to take the

time to recognize your strengths and
develop your skills, both soft and hard
skills.

At the same time make sure to improve

your skills.
 How to Improve Soft Skills
Prioritize which Skills to Develop - Every individual has a unique mixture of
strengths and weaknesses. Take some time to analyze what you consider to be
areas of strength as well as areas where you would like to improve.

Ask for Feedback - it’s a great idea to ask trusted friends or mentors for
feedback about your own soft skill strengths and weaknesses. By asking others
for feedback, you may reveal blind spots in your self-perception. If so, you’ll have
gained valuable insight into areas you otherwise wouldn’t know to improve.

Step Outside Your Comfort Zone - to work on interpersonal skills effectively,

you must step outside your comfort zone. You're doing this to improve your soft
skills by applying a little necessary pressure.
 How to Improve Soft Skills
Self Reflect - Self-reflection is a beneficial practice for just about everyone, but it
takes intentionality in today’s fast-paced world. Think about the situations where
you didn’t get the response you expected or where someone seemed to take
you the wrong way. Think about what you said, how you said it, and even how
you postured yourself as you said it. You may come across some surprising
observations about your behavior in those moments, and these can help you
improve your soft skills over time.

Work on Critical-Thinking Skills - Critical thinking is a soft skill. Thinking

reflectively for the purpose of self-improvement is critical thinking. Work to
improve your ability to be discerning and to think carefully before reacting. These
abilities can significantly improve your communication and decision-making over
time.
Entrepreneur The successful entrepreneur enjoys a
position of prestige in the community
because of his many contributions to
He is someone who innovates; this society especially in providing jobs to
means he uses his skills, interests and people and providing needed goods
unique ideas to build his own business. and services.

Entrepreneur are people who organize, Aside from material profit,

manage, and assume the risks of a entrepreneurs are rewarded by a sense
firm, taking a new idea or a new of accomplishment for having created
product and turning it into a successful something out of nothing. For many of
business. them, the psychological rewards far
outweigh the material ones.
Entrepreneurs are NOT
BORN.

They are DRIVEN.

If you have a feeling that
you are meant to do
something bigger, more
meaningful – CONSIDER
yourself as an
entrepreneur.
To do so, you just simply
need to harness your
ENTREPRENEURIAL
MINDSET.
Entrepreneurial Mindset

It is a way of thinking that enables you It is a set of skills that enable people to
to overcome challenges, be decisive, identify and make the most of
and accept responsibility for your opportunities, overcome and learn from
outcomes. setbacks, and succeed in a variety of
settings.
It is a constant need to improve your
skills, learn from your mistakes, and You can earn money by doing what you
take continuous action on your ideas. love, simply by becoming an
Anyone willing to do the work can entrepreneur. The entrepreneurial way
develop an entrepreneurial mindset. of life combines creativity, challenge,
hard work and satisfaction.
 How to Develop an
Entrepreneurial Mindset?
ANYONE can learn how to act like an entrepreneur, build the habits,
and learn some business hacks to fearlessly create a business or start
a side hustle.

ANYONE can work towards starting their business and earning

passive income without quitting their job
 But here’s the thing, the
biggest KILLER of the
entrepreneurial mindset is
not FAILURE, not the
ECONOMY or BAD IDEAS>
 It’s DOUBT.
Self-doubt kills many
dreams.
 So LEARN TO MASTER
YOUR GAME, because most
people are AFRAID TO
START pursuing their
dreams.
 Five (5) Characteristics of
Entrepreneurship
To succeed as an entrepreneur, one must gain the ability to look at
a problem or situation, digest all available data and make a
confident decision to move forward.

Your ability as a decision-maker will make or break your future

successes. Like many other skills an entrepreneur needs, being
decisive is a skill that can (and should) be practiced and
strengthened in your day to day life — starting with the tiniest
decisions.

Being decisive takes practice to master and it begins with small

decisions in the business of daily life.
 Five (5) Characteristics of
Entrepreneurship
Confidence is the second characteristic of the entrepreneurial
mindset and one of the most important qualities of an entrepreneur.

It is essential that you get used to uncomfortable feeling of

knowing that you don’t actually know what you’re doing.

Take as an example of other people who are making mistakes or

doing things incorrectly or still learning how to launch their product.

Well, they weren’t born of doing so. They learned it and so are
you. But looking confident and being confident are two different
things.
 Five (5) Characteristics of
Entrepreneurship
Here’s to get you going:

● Do you want to be a podcaster? Start podcasting.

● Do you want to become a professional chef? Start cooking.

● Do you have side hustle ideas you want to start? Stop watching
Netflix every night.

Pretending you are good at something will enable you to do it

confidently enough until you become good at it. And the more you
do it, the better you will become.
 Five (5) Characteristics of
Entrepreneurship
The entrepreneurial mindset comes from taking responsibility of
your actions and outcomes.

You need to internalize and accept that:

● Everything that happens to your business – YOU are responsible

for it.

● Whether you succeed or fail, it is YOUR responsibility.

From this moment forward, you must accept responsibility for

everything in your life and hold yourself accountable to it.
 Five (5) Characteristics of
Entrepreneurship
No more excuses. Accountability is required to being an
entrepreneur as well as successful employees. Stop blaming others
for the circumstances that is happening in your life.

As James Altucher said on the podcast:

“Life is a sentence of failures punctuated with brief successes.”

 Five (5) Characteristics of
Entrepreneurship
As an entrepreneur, you will need to learn to deal with making
mistakes and failing. They are inevitable and a part of your
growth.
If every misstep plummets you into self-doubt, you have to change
the way you look at being wrong.
This mindset shift takes resilience and is foundational to the
entrepreneurial mindset.
Success does not happen overnight. Taking wrong turns and
making mistakes is something that happens to everyone.
 Five (5) Characteristics of
Entrepreneurship
Resilience is a way to handle the small, simple decisions you’ve
made that didn’t turn out right. And it enables you to think, act, and
move iteratively — making small, incremental corrections along the
way.

Remember these words:

“The only people who don’t make mistakes are the ones who don’t
do anything.”
 Five (5) Characteristics of
Entrepreneurship
Humility is freedom from pride or arrogance, and it ties all of the
characteristics of entrepreneurship.

From decisiveness to confidence, humility will keep you focused

and centered.

From accountability to resilience, you will continue to move forward

through failure, mistakes, and upsets.

This is accomplished with humility. Along with humility comes

coachability — the ability to be coached.
 Five (5) Characteristics of
Entrepreneurship
If you want to accomplish big things in life, you need to be willing to
learn from others and nourish a growth mindset.

To do big things, you need to grow. To grow, you need to learn.

No matter what you are trying to accomplish, someone already has

done it before you.

Thinking like an entrepreneur means seeking out mentors and

coaches who have been where you are trying to go — and having
the humility to accept their guidance.
 Five (5) Characteristics of
Entrepreneurship
A few common misconceptions that need to be dispelled are:

● Entrepreneurs are born hustlers

● You need a unique (and revolutionary) idea to be successful
● Starting an online business requires technical skills
● You can’t succeed without full-time effort

To be clear, mastering your entrepreneurial mindset is not easy.

Nobody said it was. But you can start by following the above
mentioned characteristics.
Career Plan

Lists short- and long-term career goals Developing a career plan can help you
and the actions you can take to achieve get organized about your future, so you
them. can prepare to make important
decisions.
Career plans can help you make
decisions about what classes to take, Ideally, your career plan can work as a
and identify the extracurricular motivating tool by breaking down a long
activities, research, and internships that journey into smaller steps that are
will make you a strong job candidate. easier to execute.
Career Planning Career planning is a process for:

● Identifying what you are good at

● Knowing how your skills, talents,
It is a process of systematically values, and interests translate into
matching career goals and individual possible jobs or careers
capabilities with the opportunities ● Matching your skills, etc. to existing
readily available. jobs or careers
This process includes self-assessment, ● Matching your career goals to your
research, experimentation, decision financial needs
making, job searching, and accepting a ● Matching your career goals to your
job offer. educational needs
● Making good decisions for yourself.
● Finding ways to meet your educational
and financial needs on your schedule
The BEST POSSIBLE way of
making your Career Plan is
to establish “SMART
GOALS”
 SMART GOALS
Since pursuing a career path can take years, dividing the broader
objectives into smaller goals can give a clearer view of what to pursue.

Identify your goal clearly and specifically. Make sure that

SPECIFIC
your goals are precise as possible.
Include clear criteria to determine accomplishments. Quantify your
MEASURABLE
progress.
Set goals that you can achieve. The goal should have a 50% or
ATTAINABLE
greater chance of success
The goal must be important and relevant to you. Whether it will
RELEVANT
help you reach your long-term objectives.

TIME-BOUND Commit to a specific timeframe.

 Six (6) Steps for Career Planning
Step 1: Explore Career Options.

This stage helps make you aware of the many possibilities that exist. In
addition to learning position titles, you will also discover the skills,
educational requirements, and personal attributes needed to be successful
in various fields.

Step 2: Conduct Field Research

This stage is useful in deciding between different fields to pursue. What

better way to explore career options than to meet with someone working in
the field?
 Six (6) Steps for Career Planning
Step 3: Determine Your Job Target

Your Job Target is the specific industry and position you choose to pursue.
It may also include geographic location.

Step 4: Build Your Credentials and Resume.

This stage is ongoing and the more you build your credentials, the better
your resume becomes.
 Six (6) Steps for Career Planning
Step 5: Prepare for Your Job Search.

You will also need to get organized by starting a job search binder where all
your activities are logged and new information is kept. In addition, it is
crucial to educate yourself regarding interviewing and salary negotiations
before you meet employer.

Step 6: Launch Your Job Search

Writing a targeted resume is important to show employers how your skills

relate to their specific needs. Set aside the time to make calls, write cover
letters and thank you letters, conduct interviews, and do research
Importance of Career
Planning
1.It gives a student the much-needed 3.It consists of activities and actions
direction and makes it clear where they that you take to achieve your individual
see themselves in the future. career goals.

2.It encourages individuals to explore and 4.It is the ongoing process where you:
gather information, which enables them to Strategically plan your career goals;
synthesize, gain competencies, make and Create your future work success by
decisions, set goals and take action. It is a designing learning and action plans to
crucial phase of human resource help you achieve your goals.
development that helps the employees in
making strategy for work-life balance.

.
PHOTOGRAPHY ONLINE SELLING TUTOR

FITNESS GYM DELIVERY SERVICE BAKESHOP VLOGGER/YOUTUBER FASTFOOD CREW

 FACTORS AFFECTING EARNINGS:

Responsible earning involves realizing that career choices

greatly affect lifetime earnings and standard of living
 01
What is
INCOME?
Income
● Are earnings received as wages,
rent, profit, or interest
(alternative: payments received
for providing resources in the
market).

● It is a source of cash inflow that

an individual receives and then
uses to support themselves and
their family. It is the starting
point for our financial planning
process.
 Three (3) Types of Income

Active Passive Portfolio

Income Income Income
Active/Earned Income

● When an individual earn money

● Active income is often just through a pay check, that
enough money to cover basic individual is exchanging time for
monthly expenses. Otherwise money. It means, an employee
known as, earned income. is getting paid in a
predetermined amount of money
● This includes wages, tips, to do that job for a certain
salaries, commissions and amount of time
income from businesses where
there is material participation ● Is earned as a direct result of a
(goods) specific effort. In other words,
input is correlated to output.
Passive Income

● It is generally earned from an

income-producing asset that the
investor is not actively involved
with.

● Are earnings derived from rental

of property or other enterprise in
which a person is not actively
involved. These are money
being earned regularly with little
or no effort on the part of the
person receiving it.
Portfolio Income

● In the event you decide to invest ● Any income earned by your

for long-term and choose to portfolio, such as dividends,
purchase stocks, bonds, and interest, or capital gains, are
other investments that don’t called portfolio or investment
require you to actively perform/ income. While these may seem
work to earn money, this all like passive income, too, they
goes into what is called your are taxed differently.
portfolio.
● Unlike passive income, portfolio
income is not subject to
Medicare or social security
taxes, and portfolio losses can
offset your capital gains.
 Other Classes of Income

Profit Interest Dividend

Income Income

Rental Capital Royalty

Income Gains Income
Do you have any idea about
the CASHFLOW
QUADRANTS?
Cashflow Quadrant Robert Kiyosaki

● Cashflow Quadrant” was written

by Robert T. Kiyosaki, the financial
expert behind the Rich Dad
website.

● Represents the different methods

by which income or money is
generated. Different methods of He is an entrepreneur, investor,
income generation require motivational speaker, author and also a
different technical skills, different financial knowledge activist. He is very
educational paths, and different popular for his series of books called ‘Rich
types of people. Dad Poor Dad’.
Kiyosaki is a Japanese American.
So what does E, S, B I
means?
Stil did not understand?
 The Four (4) Quadrants Explained
EMPLOYEE - An employee has a job. This is where most people earn their
income. Employees can make little or a lot of money. But when an
employee stops working (or when the business stops), their income stops,
too. This long-term lack of control over income is the primary problem of
the E quadrant. An employee’s financial destiny, security, and freedom is
dependent upon the whim and the success of their employer.

SELF-EMPLOYED -The self-employed still work, but they own their job.
The S quadrant includes dentists, insurance agents, restaurant owners and
the like. Many self-employed people earn very large incomes, but when
they stop working so does their income. Self-employed people do have a
lot more control than an employee, but that also means they have more
responsibility. As a result, success usually means working harder and
working longer.
 The Four (4) Quadrants Explained
BUSINESS ONERS - Those in the B quadrant own a system and lead
people. The systems and people who work for the business can run
successfully without the business owner’s constant involvement. The
wealthiest individuals in the world typically own businesses. These include
Bill Gates of Microsoft, Jeff Bezos of Amazon, and Mark Zuckerberg of
Facebook.

INVESTORS - Investors own assets that produce income. This is the

quadrant for truly passive income. Investors in this quadrant have usually
accumulated money earned in one or more of the other three quadrants,
and they let the money go to work and produce even more money for
themselves. Investors often purchase shares of companies owned by those
in the B quadrant.
“There are multiple paths to financial
independence, and most of them ultimately
lead to quadrant B and I. So, if you want
to achieve greater financial independence
and freedom, it will pay to start LEARNING
the SKILLS & MINDSET required to make
this move to the right side.”

—Chad Carson
10 Money Mindset
In this video, Chinkee Tan
shared some tips in order to
bounce back in life generally
and from the effects of the
pandemic specifically.

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ch?v=ZZxb826AFaA&t=363s
Thank You!
Enjoy
Learning!