This video ranks various income streams from worst to best, categorizing them into tiers (F, D, C, B, A, S). It explains the characteristics, pros, and cons of each tier, emphasizing the importance of leverage, ownership, and assets for building wealth. The video aims to provide viewers with a roadmap to understand their current financial standing and how to progress towards higher income tiers.
Salary (D tier) offers more predictability because income is fixed each month, and it often comes with benefits like health insurance, paid vacations, and retirement contributions, which are typically absent in hourly wages (F tier). Hourly wages are directly tied to the hours worked, meaning income can fluctuate significantly based on hours available or missed work due to illness or other reasons.
The two main paths to reaching S tier income are: