Tuesday, January 29, 2013

What is Residual Income?

by Sarah Robbins
(My Mentor and Leader)

I didn't understand residual income until I lived it. If you're back at work today and aren't in love with your profession and the life you're able to design, maybe it's time you learned what residual income is.

It's also known as passive or recurring income, and it's different from a regular wage that's based on the number of hours invested in a particular job. Residual income continues to generate itself even after the work is done. This kind of income helps you earn more while working less as it continues to pay over and over for work done once.

If you're working a job and earning a salary (like I did as a teacher), there's a 1:1 ratio between the hours of work you put in and the dollars you earn. You stop working, you stop making money. You would only be able to earn more money by getting a promotion or working longer hours. For both of these options, there is an upper limit that can't be scaled.

Where do you find residual income? I found it in turn-key entrepreneurship. Is it easy? NO. I've worked hard for a few years, but on my terms and around the other parts of my life I love. And it's allowed me to design the life of my dreams, having compressed 30-50 years of work into 3-5, and retire my handsome husband Phil 35 years early!  - Sarah Robbins

If you're looking for more money, flexibility and to dream bigger this year, we should talk. I'd love to help you design the life of your dreams, too. 

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