Have you ever wondered what type of income the wealthiest people in the world use to create their fortune and do it by working less hours?
Most people are relying on the more traditional way of creating an income for themselves and are getting know where fast; Such a way is:
The best way to explain linear income is money you receive when you work or trading your time for dollars. Working 40 hours a week and getting paid one time for those 40 hours. With this type of income your income is a direct result of you being actively involved continuously.
The problem with this type of income is the minute you stop working or get sick the income stops immediately. Meaning with out you being actively involved the income will not come in for you. Yes you may get vacation time but even that has a limit of 1-2 weeks then its back to work to keep income coming in.
Another problem with this type of income is that on your job you are helping your boss live on the Cayman Island or somewhere nice and warm sipping on a Margarita with an umbrella in the glass.
Here’s a good question to ask yourself, “Who’s helping you get to the Cayman Island or live the life of your dreams?
Luckily for you there is such a way to create the lifestyle you read about in the magazines or you hear about on TV. What if there was such a way to earn income continuously from work you have done right one time. Its through a income stream called:
Residual income is income that you continue to receive after a sale. An example of residual income is when you write a book, get paid for the initial sales of the book, but then get a percentage of all future sales. The percentage would be your residual income.
This type of income you see being generated mostly by celebrity singers, songwriters, inventors in the form of royalties.
The best thing about residual income is that it spurs off into multiple income streams for you as well such as:
This type of income allows you to earn income without actively being involved. Think of it this way, right now you are working 40-70 hours a week and getting paid once. How would you like to get paid for that same work you did working those 40-70 hours over and over again.
This is the true meaning of passive income this is what allows your boss to live on the beach while you slave at work all day.
The last income stream Residual Income allows is:
This is best described by a quote from one of the past wealthiest men in the world, J. Paul Getty. He said, “Id rather have 1% of 100 peoples efforts than 100% of my own!”
Leverage income allows you to earn income off the efforts of other people. Think it about if you were on vacation with your family and when you returned your bank account increased everyday. How good would that feel?