We bloggers perhaps serve as the best example of this in practical application, that being endeavouring to make money using what you know as opposed to what you do, or in addition to what you do. But why on earth is this desirable in any way though? I mean you could very well enjoy your current job and you could be making enough money to have some left over for savings and investments, thus working towards a very comfortable retirement. You perhaps even enjoy going on vacation regularly and you have enough of a financial cushion to fall back on should things go horribly wrong, like perhaps if there’s a medical emergency to deal with.
Before the advantages of endeavouring to make money with what you know as opposed to what you do are explored, it’s perhaps imperative to first define the two ideas and separate them.
What You Do
It’s pretty much self-explanatory though, but this just entails the actions you take in order to generate your income. So if you go to work in the morning and slave away in an office or at your cubicle, this is generating money through an action — making money through doing something.
What You Know
Now if you think back to your college days and focus on the subject matter of what you studied, chances are you’re not in a career with a job description that calls upon that subject matter you spent all those years trying to master. That knowledge you acquired in addition to everything else you know is exactly that — what you know. If you think about it a little bit, you’ll come to the realisation that you know a whole lot of things, not just things which are relevant to the corporate world, but just things about everything that has to do with your very existence and how you fit in to this world.
What You Do Vs. What You Know
Most people never progress financially because they place too much of their focus on earning their income through what they do, i.e. the job you go to everyday as opposed to trying to use what they know to generate an income. It comes down to this though; if you focus on an income generated through what you do, you’ll have to keep repeating that income-generating action in order to keep generating that income. On the other hand, if you focus on generating an income through what you know, you can use that knowledge just once and then have that knowledge pay you over and over again.
The manner in which this can be achieved varies in complexity, from something as simple as gathering up special promotions which you have exclusive information about and then earning cash through those promos as an affiliate seller, right up to publishing a book in a specific niche, using your expert knowledge and then simply selling copies of that book.
You could perhaps even look at it from the point of view of a consultant in comparison to a full-time employee. The consultant earns money (more than a full-time employee) for their knowledge as opposed to the employee who earns money for their perpetual application of that knowledge.