Think back to your first job – were you a babysitter, a paperboy, or punching the time card at McDonalds? In each of these jobs you were paid by the hour or to complete a job. When you were on the clock you got paid, but the moment you entered your employee number into the computer for your break the clock stopped. These jobs along with many more salary type professions are considered active income.
Active income is when you are paid for a certain amount of work. You work for one hour and receive one hour’s wages. To increase your income you must either work more or find a way to increase the amount you are paid per hour of work. Your income is a direct result of your actions. Active income is also limited, we all have 24 hours in a day and 7 days in a week. You can only work so many hours so therefore the time that you can be paid for your actions directly limits your active income. Wouldn’t it be nice if you could get paid when you are not on the clock? You can.
Hello Residual Income
In all things there are opposites and residual or passive income is the opposite of active income. In residual income you receive payment for an action long after the action has been completed. The rich and famous enjoy residual income from song rights, book sales, and patents. But you don’t have to be famous to enjoy the benefits of residual income.
Potential Sources of Residual Income
- Advertisements, subscriptions, donations or affiliate links on your blog or website
- Purchasing property and leasing or renting out the space
- eBook sales
- Investment programs with interest
- Photography royalties for stock photos
- Network marketing opportunities
Almost a Fairy Tale
Now don’t let the word passive fool you. With residual income you have the potential to earn money while lounging on the beach, but you need to put in the effort to get your investment rolling. Choose an opportunity that matches your strengths and has the potential for growth.
In network marketing you invest in the right product and share that product with customers that connect to its purpose and value. You move products or services through a vein of like minded people that become loyal to a product or service. As the customers return to the product again and again long after your initial contact and sale your residual income grows. The only limit to residual income is how much you do and are willing to help other people.
Residual income allows you to free yourself from the timecard. As you grow your business you could go from a part time job that brings you full time pay to being financially independent. Whether this provides you with freedom from debts, the ability to move your location, or change your family lifestyle – investing in a residual income business is a postive investment in your future.
A professional network marketer offering expertise is growing a successful network. Wes proudly represents Shaklee products and also assists individuals as an independent insurance agent specializing in Medicare Supplements and Medicare Advantage plans. Wes welcomes the opportunity to assist others finding healthy lifestyles and financial freedom.