The Difference Between Linear & Residual Income

November 9, 2006

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 residual, 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. Hence, 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 doesn’t 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:

1. Savers earn interest

2. Songwriters earn royalties on their songs

3. Authors earn royalties from their books.

4. Insurance agents get recurring commissions from their sales

5. Investors get dividends and interest from their stock.

6. Game designors and software creators get royalties.

7. Entrepreneurs get business profits.

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. Thus, that shall be my main focus for the time being.

How about you?


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