Residual Income - Can the average person take advantage of it?

Is Financial Independence Possible for YOU?

Most people earn wages, salaries, commissions or fees in direct proportion to the number of hours they work. The more hours they work the more compensation they earn; this type of structure is called linear income. People receiving some form of linear income rarely achieve what would be defined as true wealth; there simply aren’t enough hours in the day to earn enough money. Think about the wealthiest people in the world. Did they find financial security by earning a higher annual salary, or did they seek a raise in the hourly rate that they were being paid? Of course not! More money per hour and higher salaries will never provide true financial independence, only an incrementally higher standard of living. If working really hard won’t earn enough to become one of the rich and famous, how do people who are not born into riches ever achieve real wealth? There is a better way - earning what’s called “residual or passive income” - and it’s easier than you might think. Residual income is earned when you stop trading time for money, and start thinking like an entrepreneur. The people who have discovered how to have true financial independence get paid MORE THAN ONE TIME for the work they do.

Now for the million dollar question, how does the average person begin to earn residual income? Most of us were taught to work hard and try to climb up the ranks in whatever profession we chose, working toward the next pay level, hoping to earn a little more disposable income. Then we promptly disposed of that income and began to work towards the next pay raise. Breaking away from the earning model we have embraced for our entire working life is mostly a psychological exercise. There are many opportunities available which allow you to begin to build a source of residual income; however these sources are going to be foreign to the average wage earner and will probably cause some anxiety in the beginning.

Let’s look at some ways to develop a source of residual income:

·        Become an actor and receive residual income from movies, commercials and/or endorsements.

·        Become a famous athlete using your extraordinary skill in the sport of your choice.

·        Allow an oil company to drill an oil well on your property and receive royalty payments.

·        Publish a book and receive income from the continual sales.

·        Purchase rental property and collect rent or lease payments.

·        Invest your extra linear income and receive interest or dividends.

·        Invent a gadget that is patentable and sell the production rights for a percentage of the revenue.

·        Develop a business selling consumable products that people need and depend on, receiving commissions from the repeat sales.

A vast majority of the population is not able to take advantage of the first seven methods of acquiring that elusive residual income we have been discussing. However, the eighth method listed above is a definite possibility for the average person. With a small investment and serious commitment, in what we will call direct sales, success is far easier than most people believe. The secret, or at least what most people don’t realize, to you being successful is finding the right company and team to partner with.