Over one’s lifetime, the average person will work eight hours per day, forty hours per week, 48 weeks per year. Traditionally, we’re told go to school, study hard, get into college so we can find a good job. Once there, it’s time to climb the corporate ladder to compete for fewer and fewer high-paying jobs. Have you ever stopped to question this outdated formula for creating wealth? For most people, this time money dilemma exists because we’ve settled for what we call linear income.The key to solving the time money equation is something the rich already know and it’s the exact opposite of linear income. We’re talking about residual based income. Imagine working for an hour, yet you got paid for it over and over again.
Once you fully understand this concept, you’ll have a very difficult time going back to a job, earning only a per hour wage. What is Residual or Passive Income?Residual income is also known as passive income. In the most simplest terms, it means money coming in on a residual basis, once the initial setup has been done properly. Example of residual incomes can be seen all around you, but you have to understand the concept. For example, anytime you see a website on google, more than likely they have a way to monetize it. This means that they are earning a form of revenue from their website. Once the website is set up and running, it can run on cruise control.
Another tangible example of this is anytime you see a rental apartment property, the owner has it set up so the manager operates the day-to-day activities while the owner or shareholders can collect the profits from all its revenues. They bought the property only once and then they can collect residual income network. Marketing is another great business model. Realistically, it takes time to build an organization, but once it’s built, you can sit back relax and enjoy the money keep coming in. Why Should You Create Your Own Multiple Streams of Income?Job security doesn’t exist like it used to’ it’s a thing of the past. Too often, we hear stories about employees working for a company for like 20 years, only to be laid out before retirement. The idea here is to build multiple streams of residual income, so if one goes sour, you’ve got backups and you can still maintain your lifestyle without being affected that much. Passive income offers you leverage to take time off to do whatever you want Time Freedom If you have a full time job that’s great, but now is the time that you should consider building your residual income on the side and it will grow over time.
You don’t need the extra income as your judgment will be more clear and you’ll be able to make better decisions. It’s when you’re starving for cash that opportunities don’t line up as they should. Build your safety net and aim to have at least half of your current income inresidual income. Your goal should be able to have the equivalent of your monthlysalary. But in residual income, the more streams of passive income coming in, thebetter.ConclusionThere’s a wave of smarter people that have chosen to enhance their lives by becoming a member of this new forward-thinking group. They’re a group of individuals that strive to live lifestyles beyond the typical nine-to-five job.
Many strive to free themselves from the stress of a daily commute or having a boss.
