Earn Residual Income …
Why and How
Earn Residual Income to Secure Your Income Stream
What Residual Income is and Why you should Strive to Earn it
Residual, or passive income is an important financial concept that is rarely taught in schools. This is unfortunate because it a key ingredient to building wealth. Wealthy people often have several sources of residual income that they use to achieve financial freedom. I am personally indebted to author and speaker , Robert Kiyosaki. He was the one who first taught me about residual income. When I understood it, and the power that residual income had, my entire paradigm of money and finances shifted. I literally felt like the “light bulb” came on. I remember this revelation so clearly that I still remember where I was sitting when I first understood. Now I hope that you will benefit as much as I have form this information. The Two Types of Income: Linear Income and Residual income Without knowing the terminology, you already know what linear income is. That is when you trade your time for money. This is how almost everyone makes money. If you possess special skills, knowledge or talent, you will receive more money for your time, but even if you are a professional athlete , doctor or lawyer, you must work to be paid. Most of us trade time for dollars. We work once and are paid once. That is a fair and just way to earn a living - but it falls short of the ideal. The main limitation of linear income, is that no matter what you do, you are trading your time for money. If you stop working - regardless of the reason - you stop earning money. If you become ill, injured, are fired or retire before you have substantial reserves built up, you are in trouble. Since most people are only one paycheck away from financial disaster, the idea that money could stop coming in ought to be terrifying. Residual income is different. When you earn residual income, you do something once but are paid over and over for it.
"Residual Income: Something you get every month before you get out of bed."
Paul Getty, the oil magnate of the 19th century, once said that the only way to obtain sustainable wealth is find a system that will pay you while you sleep, i.e. residual income. Oil was how he earned residual income. While he slept, the wells would continue to pump. When he woke up in the morning, he was richer than he was when he went to sleep the night before. Robert Kiyosaki explains in his best selling book, "Cash Flow Quadrants," that the only way for the average person to become financially secure is to find a system to earn residual income. Some examples of ways to earn residual income are writing a book, song, or screenplay, and receiving royalties. Rental income from property is another way to earn residual income. Another example of passive income is selling a service that is automatically billed monthly. (Think of health club memberships or cell phone service) The service was sold once, yet the people who subscribe to the service pay each month regardless of weather they used it or not. This is the reason life insurance salespeople can often retire young. You want to find a way to earn residual income. Find your first one, get it going, and then find another. Then another. Use the money you earned in your first source of passive income to invest in others. Another leading financial author, Robert Allen, calls this multiple streams of income. Robert Kiyosaki makes another eye-opening point… He points out that if you build your sources of residual income to the point where they equal or exceed your expenses, and then you have financial freedom. In fact, he sells games designed to teach principles of passive income. The games are won by the first person to earn residual income that exceeds his expenses. This freedom comes because you then have more options. You could walk away from you linear income source (job) and still have your expenses met. Perhaps you could reduce the hours you work to be able to spend more time with your loved ones or pursuing other dreams. (Dreams that were squelched by the demands of life.) When you earn residual income, you experience financial freedom because you then have time and money. Consider someone who only has linear income... If he works more to make more money, he trades even more of his time away. That may leave him with enough money to do some things he has always wanted to do, but he might not have the time. If he wants to work less to pursue his dreams, he may not have the money to pay for them. That is where people earning linear income become trapped and those who earn residual income are free.
Residual Income is Recurring Monthly Revenue
Looking for a Good Way to Earn Residual Income?
While many of us cannot write books, movies, or songs, or put enough money down to buy rental properties.I have searched for years and found these as some of the best ways to earn passive income. I personally use all of them (multiple streams of income). They have some common characteristics, which are important to me for minimizing my investment of time and money: - Use a proven system for success- that way I don’t have to figure things out for myself, I just follow in the steps of those who have succeeded before me.
- Have built-in help and support for when I get stuck of don’t know what the next best step is
- Utilize leverage , multiplication or amplification of my efforts, to make the most out of my investment of time and money.
- Cost some time, but little money to get started
- Run automatically for me when I’m doing other things
- Partner with only solid, reputable companies
- Provide both good timing and opportunity
Top Picks to Earn Residual Income
While we are glad to show you some great ways to earn residual income, we also want to help you manage your money wisely. That is really the main emphasis of this site.Please be sure to visit our
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