Sunday, March 3, 2013

Linear Income Vs. Residual Income – Which one do you belong



Linear income is an income where almost everyone of you belong. There's nothing wrong wit it actually, its just that for an 8 hour job you are only paid once, right? The next day if your not going to work then your pay check may have one day lesser. This income I am referring to is your salary income. You are only paid once for your effort. If you don't show up for work, neither does your pay check. Would you not be excited if you will be paid or compensated a hundred times for an hour of work. Of course everyone of us does. So why not start creating a residual income in your free time? But wait what is residual income? residual income, according to Robert Allen, a multi millionaire, is a fancy term for a "recurring" stream of income that continues to flow whether you're there or not.

The secret of the wealthy is not that they have more money but that they have more time freedom. Many of their streams of income are residual, so they have time to spend on anything they want. You may think and appear to be reach because you're a doctor, lawyer or sales people but you are not. A doctor has to see a fixed number of patients a day. And he has to be there for every single one of them. A doctors income is therefore linear. The same with lawyers, sales persons. If you're smart you will start shifting your income streams from linear to residual. So, start by turning at least one new residual stream ...