Difference Between Linear Income And Residual Income
Have you ever wondered how the rich manage to acquire so much wealth? The secret of the wealthy is not that they have more money but that they have more time freedom. Because many of their streams are focused on building a residual income, they have more time to spend on anything they want.
So what's all this comparison between linear and residual income? Income that is paid once for every hour you work is linear. Here, income from a salary is linear. You only get paid once for your effort. However, with residual income, you work hard once and it unleashes a steady flow of income for months and even years. You get paid over and over again for the same effort. You get paid while you're sleeping, while you're watching a movie, 24 hours a day.
Now does not that idea sound nice to you?
So what are the various forms of residual streams of income?
Here's a list of the many types of residual income you might want to explore:
- Savers earn interest
Songwriters earn royalties on their songs
Authors earn royalties from their books.
Insurance agents get recurring contracts from their sales
Investors get dividends and interest from their stock.
Game designers and software creators get royalties.
Entrepreneurs get business profits.
A residual income is the recurring payment which is received at intervals. Residual income (also called passive income) is normally a recurring income which continues to be paid to you as time advances for all your efforts that you have taken long before.
There are tons of other forms of residual income that you can tap in. Question is: 'How many of them do you already possess?'
If not, how much effort are you willing to put the effort to achieve them? Now personally, I feel that the Internet provides numerous opportunities for us to create for ourselves residual income streams.
There are a number of methods for generating residual income on the Internet. Some among them are creating a product and selling it over and over using an automated system, forming copyright materials, revenue creating assets, and network marketing. A residual income allows a person to get away from the worries of spending 8 hours a day in the office. It also provides financial stability.
Here, one should always seek to create residual streams of income for oneself in order to attain the financial freedom that everyone so desire. And the Internet is one platform which provides many residual income opportunities