EARNING PASSIVE & RESIDUAL INCOME

Creating wealth is not something that is typically taught in sch...ools and although many people dream of becoming wealthy, very few actually take the time to learn the secrets to success or put strategies in place to set themselves up for future financial gain. Most people just expect success to happen, what they fail to realize is that success comes to those who make it happen.

There are many books that would argue that the best way to achieve financial freedom is by getting your money to work for you (e.g. shares, real estate etc.). This principle is great in theory but unpractical for many, as in order for your money to make money, you actually need money to start with. Yes, you can always cut back on your spending and start to save your pennies to improve your financial situation, but how long will it take for you to see the return and are you willing to sacrifice your quality of life to achieve it?

Residual Income (Passive Income)

Some people go through their entire lives without being exposed to the term residual income, however with our education background and experience in wealth creation we feel that it is our duty to let people know that there is a better way.

Residual income, also know as passive income, can be defined as income streams that are generated from the past efforts of an individual and/or current effort of others. A good example of this includes the additional pay given to a performer for re-runs, repeated use of a film, radio or TV commercial etc., in which the performer appears.

To fully appreciate the concept of residual income we must first understand the way in which most people get paid, and that is in the form of linear income. Linear income refers to trading hours for money. For example, most people go to work for 8 hours a day and get paid for 8 hours work. The problem with linear income is that there are only so many hours you can work and the minute you stop working, you stop getting paid.