Login
Password

Forgot your password?

Build Residual Income

By Edited Jun 3, 2016 1 2

If there is one goal that you should focus one that can completely change your life for the better, it is to build residual income. There are basically two types of income. The first is what most people have which is linear income. This is income where you trade your time for money. You put in a certain amount of hours a day and you get paid based on your level of pay. The problem with this type of income is that no matter how much you are making, once you stop working, your income stops. This is why most people will have no choice but to work until they are 65 before they can retire.

The other type of income is residual income. This is income that comes to you on an on going basis. In order to have this type of income, you need to set up a system where you can produce income without you having to be there. This may sound impossible but you probably already have a source of residual income, your savings account. Whether or not you work, your savings account is producing money for you by way of interest. Unfortunately, in order to get any decent amount of income from your savings, you will need hundreds of thousands of dollars.

So how do you go about building residual income? The first thing you can do research on different methods. Think about anything that can make money even after you are done working. For example, actors on sitcoms get paid royalties every time their show plays on television even though they are re-runs. Authors get paid for every book they sell even though they only had to write the book once. Song writers, inventors, all of these people receive residual income.

These type of methods may be discouraging to you since they seem difficult to do but there are many other methods you can use such as real estate investing where you rent out property or even start an internet business where you get traffic coming to your website 24/7 and can produce money for you even while you are asleep. One method is to create niche sites and get them ranked on search engines in order to bring in a ton of traffic each and every day. It takes a lot of work but the results are well worth it. You can use a more traditional way of staring a brick or mortar business as well but you want to make sure you set it up where other people will be running the business for you instead of spending your every waking hour working in the business.

To build residual income takes work and time. Just like anything worthwhile in life, you will need to work hard in order to produce the results that you want. The upside of making residual income is that you can very well retire within 10 years if you make enough of this income to offset all of your expenses. Your only other option is to wait until you're 65 to get residual income by way of social security payments but we all know your lifestyle is going to drop dramatically. Do what you can do create this type of income. It will literally change the way you live your life for the better.

Advertisement

Comments

Feb 3, 2010 6:39am
askformore
Great article. Very correct points.
Feb 8, 2010 2:53pm
WriterGig
I'm a huge fan of building residual income online -- it's awesome to earn a full time income even when you take a couple months off work1
Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Business & Money