SEO and blogging

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I am new to both these subjects. However, I was told by some friends that we can earn good amount through these two ways. However, we have to have good knowledge of these two subjects. I understand something about the blogs. However do not understand how to start. About SEO, I have very little knowledge. So is someone experienced here in SEO? If I want to learn about SEO, can you suggest some reading material or tutorial?