Earning Residual Income - Why You Need To Learn How To Create It
Earning residual income is something most people think about but, most never take the steps to create it.
I want to ask you something...
What if something happened to you and you were unable to work...would you be financially secure and still have an income?
If the answer is no then it’s time to take steps to make it yes.
This topic is really close to my heart and it’s important for EVERYONE.
Your bills are residual and in turn, your income needs to be as well.
Having residual income creates financial security.
So, in this post, I’m going to share with you how you can get started on a residual income plan and give examples of how you can make a residual income.
Active Income vs. Residual Income
Active income is a result of your effort. You work and in turn collect money from the hours you worked.
Residual Income is when you continue to get paid after the work is done. It’s having an asset such as a house that you collect rent from or owning a business but, no longer needing to be involved in daily operations to make money from the business.
Residual income is not limited to the number of hours you put in.
Have you ever heard the saying the rich get richer and the poor get poorer?
If you don't find a way to make money while you sleep, you'll work until you die. ~Warren Buffett
Many look at this statement and think it’s unfair, however, the reason this happens is the rich focus on a very different way to earn money.
It’s a myth that residual income means you set it and forget it. It doesn’t work that way and the rich definitely don’t do that.
The idea behind residual income is LEVERAGE.
To create residual income, you need to create something that other people want and will continue to buy long after you create it.
Residual income means planning for your future.
Having only one stream of income is risky. Think about if your one stream of income went away tomorrow. Would you struggle financially?
The first thing is to be aware of how you currently make an active income and then decide how you can start making a residual income at the same time.
Trust me, it’s not easy, I’m still working on doing both myself but, it CAN be done.
Pack your patience because it won’t happen overnight.
As you start making more residual income then you can simultaneously scale back the hours you’re working to make your active income and commit them to your residual income to make it grow faster.
Consistency wins...commit 1-2 hours everyday and over time you’ll reap the benefits.
You are in control of your financial future and you are also responsible for it.
Think And Grow Rich: it's no secret that I'm a big Napoleon Hill fan and this book is one of the first that I read before starting my first business. I read it over and over again. I always learn something new and it helps me keep a positive mindset.
The 4-Hour Workweek: learn how to leverage your time to work less and make more? Yes, please!
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