THE RECIPE OF RESIDUAL INCOME

WHAT IS PASSIVE/RESIDUAL INCOME?

image credit qualitylovelife

I’m sure many of you have heard the phrase “The rich gets richer and the poor gets poorer.”  This isn’t because the rich are lucky.  What is unique about the rich is that they have discovered the importance of Residual Income and continue to struggle for that; and achieve that.

WHAT IS ACTIVE INCOME?

The masses all across the globe depend their living on ACTIVE INCOME.  Active income is the income that can't be earned without your presence in the business scene. You must show up to work place to earn wages, salaries or your own business.

WHAT IS PASSIVE OR RESIDUAL INCOME?

There are quite a few in the world who derive their income through this sort of income. Passive Income OR Residual Income is the income achieved through setting up a system; and this may require variable time keeping in view the nature of business. In simple words what you do is instead of earning directly you incorporate a system before your income and that system generates an income for you. That means in the first phase of Passive Income or Residual Income you have to remain active in order to establish a system. And once it is done then the income depends your system rather than you.  Following are the example of of Passive Income OR Residual Income:

*     Brands

*     Franchises

*     Business Investments

*     Book

*     Movies

*     Songs available on CDs or any other media that sells in the market

*     Real Estate

*     Personal Business Franchises ( Direct Selling/Network Marketing)

DOES ACTIVE INCOME REQUIRES DILIGENCE?

If you have a product that customers purchase every month then this becomes a source of residual income. As a business owner, this does not require your presence for business day activity.  However, in order to grow your business up you need to offer support and, keep coaching, mentoring and training so that residual income remains intact and show continuous upward growth.

Have you ever noticed that rich people never stop to their work. They continue to venture on business opportunities. It’s not just about earning the money but to keep the business spirit alive; keep themselves busy.   They are passionate about getting engaged in multiple businesses; and they love diversity.

The poor folks might have a perception  of riches getting more richer "unfair". While if you study it carefully you would come to know that the rich have a different mindset. They understand the power of generating residual and passive income by building assets and leveraging other people’s efforts.

“ I am working full-time on my job and part-time on my fortune.”

Jim Rohn                

DOES RESIDUAL INCOME REQUIRES PATIENCE?

Like I said earlier the time factor to attain Passive Income level remains variable  for different people with different business. Matter of the fact is IT TAKES TIME. Teach and educate yourself.   Think about planting a seed. How long does it take for that tree to grow up from the base?  How long will it actually take before a fruit tree ripe fruit?  It has to follow a logical process. You take care of it; water it; clean up the bed; so much and so on. The same is the case of  Residual Income. Just like planting an orchard; unlike a farmer who yields grains. You need not to repeat this process in every season. Once you set up an orchard you only need to nurture it and at the end of the day you can enjoy the fruit.

RESIDUAL INCOME IS THE KEY TO FINANCIAL FREEDOM

image credit future-success

Living a life from Pay Cheque to Pay Cheque. This is what the life-style which majority of people pursuing through out their lives.  They are struggling just to meet ends need; what about addressing unforeseen financial crisis or scene or unaccounted for need that could arise anytime without asking your permission. The retirement scenario is no more less than a pain for retires.

Everyone wants to have Financial Freedom.  They want to achieve a better lifestyle for their family.  But somehow they stuck up and don’t know or understand how they can  get through this.

I wish to help them understand as to Why and How much important is this for them to attain passive income stage. The first and foremost thing is the realization of how important is this for them to get on with this as soon as possible. What I ask them is to invest in their-selves, believe in themselves.  Everyone has something unique in  him and they change their circumstances by exploring and implementing the right things to do.   

If you are relying on Active income and really wish to understand and proceed with Passive Income at an early stage of your life I would appreciate to have your comments. I can be reached through my personal email where we can talk about How to Achieve Passive Income in due course of time.

If this you receive Value from this article then just don't forget to comment and share this with your colleagues.