15 May Residual Income. You Want It!
What is residual income?
Most of us have heard of the term residual income by now, but do we truly understand what it is, or how it can benefit us? I did some digging on what residual income is and my conclusion: WE ALL NEED RESIDUAL INCOME.
Let me explain. Residual income is also known as a passive income. Meaning you CONTINUE to get paid even after all your work is done. I know this seems too good to be true but it’s not, this type of income really exists. There are several ways to earn residual income such as royalties, real estate income or investments, all of which allow you to earn money without being present. Don’t get me wrong, this doesn’t mean you can sit on a beach getting a tan doing nothing. To shift from active income (getting paid for the hours you work) lifestyle to a passive income (making money when not working) lifestyle you have to build and manage your residual earnings.
Ideally, you want to build residual income through acquiring assets that will continue to produce revenue even though you no longer need to focus your time on that particular asset. The most common example of this would be investing in real estate. You can build (or buy) a house and then collect rent. Even after recuperating your costs on the house, you continue to make money through collecting rent. Another example would be to own a company that produces any product that requires continued use.
We now understand that residual income has an added time value because you do not have to be present to earn income, but is that it? Of course not. There is also “the distinct advantage that one or more streams of money can earn you income simultaneously”  This simply would not be possible with an active income, there are only so many jobs a person has time to work in one day. Now sure about you, but I would much rather be working fewer hours while having endless residual income streams paying me.
At this point it is clear we should all have residual income in our lives as soon as possible however, I see a problem. All of the ways to make residual income do not seem attainable without a huge cost or change in lifestyle. I think it is fair to say most of us will not succeed as actors or authors meaning we will never be able to earn royalties, nor have the money to invest in real estate. To my relief turns out this isn’t a problem, there are other avenues to create residual income with a lower starting investment. Phew.
The most attainable way for the average person to build residual income is through distributions . One of the best ways to start distributions business is with Network Marketing. According to LinkedIn “…A typical Network Marketing payment arrangement is designed to pay you to build a “network of marketers and consumers” and the more people that you are able to attract to the opportunity, the more money you can make. But, the even better news is that once you get your network started, it tends to take on a life of its own, and most of the growth will be developed by people that you may not even know today!” The main benefits of becoming a part of a Network Marketing company are:
- Low start-up cost
- Pattern of Success that is already established – simply sign up, learn, and grow
- Motivation and Excitement
- Team success approach – In business for yourself, but not by yourself
- Incredible time duplication
- Reduced stress in life
- Your business can be, after reaching certain levels, will able to your family
- Major tax benefits of owning and operating a home-based business
Network Marketing seems like the perfect solution! With no real up-front investment, why would anyone not try to build a residual revenue stream with Network Marketing. Even if you aren’t ready to dive head first, you can start in a Network Marketing company while still working a nine to five. This allows you to build your passive income over time while slowing realizing you can spend less time earning through an active income.
No matter how you go about it, I encourage you to build residual income streams! We all deserve a life full of success and more free time. For more information on the residual income opportunities that FITTEAM can provide, click the “JOIN” button located on FITTEAM.com or click here.