Residual Income (also referred to as Passive Income and Recurring Income)
Many people do not understand the concept and importance of residual income. For most people they trade their time for money. Hey I am an ex accountant and financial planner and did not really get it at first!!
Employees go to work and are paid for the hours they work. Many self employed people are paid on the same basis. You do the work and you are paid for it – once. If you do not work you do not get paid.
Residual Income is income that continues to generate after the initial work has been done. Some examples of this are:
- An author of a book receives ongoing income for sales (royalties)
- A singer receives ongoing income for CDs sold
- Positively geared rental properties give you a residual income
- Investing in shares or other various investments can result in ongoing income
Not everyone has the talent or interest to write a book or become a musician (eeks I am the worst singer!). Investing in property or shares takes capital and knowledge.
There is a way though for everyone and anyone. It is Network Marketing (also called Direct Selling, Multi Level Marketing, and Referral Marketing.
Leverage coupled with Residual Income is very powerful. Robert Kiyosaki taught me these concepts many years ago. He called leverage “doing more with less”.
Network Marketing is the best model of leverage that I know. It is a business where you refer someone, who refers someone and soon you have a growing business.
It is a business where you cannot succeed without helping others succeed.