What is residual income and why do you need it? I am surprised that so many people don’t know what residual income really is. When asked they can’t answer.
Residual income pays people over and over again after you work for it. It’s the best form of income there is in this world. People struggle with it because they don’t understand it and they don’t have the skill to obtain it. In order to obtain a residual income you need to become the very best person you can be. That means a lot of self-improvement is necessary.
We always think that “the rich get richer and the poor got poorer.” We think it’s unfair. But the reason the rich get richer is because they focus on a different way of earning money. Bill Gates and Richard Branson were not born rich. They just focused on a way of making money that was better the employee income. That is the type of income most of us focus on making.
What is Residual Income?
Residual income is a direct result of our efforts. You continue to get paid after the work is done. It includes royalties from books, movies, songs, or real estate investments that pay you long after the work is complete. For example, Bill Gates is still making money from Microsoft even though he doesn’t work there anymore. A house is an asset to the people renting it because they aren’t working there all the time. Rent is paid and the owner doesn’t have to be involved in the day-to-day activates any more.
How to Build Residual or Passive Income
The key idea is to leverage. You must be able to leverage other people’s time or other people’s money to create a residual income. You need to find people that will continue to buy from you on a regular basis, long after you’ve created it. You need to have products that are sold over and over again. It must be something that can be duplicated. For example, a doctor can only make so much money trading time for money, but if the doctor brings on other doctors he will start to leverage his results and build a residual income.
Making residual income can be very difficult at first. You have to have patience to build it. Once you have built a residual income business it will grow faster and in spite of you. You must always put effort into though. There is no such thing as something you can just walk away from completely. Residual income does give you the option of choosing your own hours and working when you want from home.