We are all familiar with the residual system; although mostly in the form of bills–residual bills. Our utility bills shows up every month as long as we continue to use the corresponding services either we get out of bed or not. The question is, why aren’t people thinking of or working towards residual income to counter the residual bills that we are very familiar with.
Residual income is the type of income that you generate when you do something only once and get paid over and over again; sometimes forever, either you get out of bed or not. True wealth is created only when residual income outpaces your residual bills.
1. Linear Income: Residual income is directly opposite what we call linear income. 97% of humankind earns income linearly. This simply means that there income is based on how much of their precious time they sell. Ask yourself a question. If you don’t show up to your job on a day that isn’t a vacation or sick day, would you get paid? If you were let go from your job, would you continue to get paid for the 15 years of your service to them? I didn’t think so.
2. Everyone is a Salesperson: A lot of times, 9-5 individuals disclaim sales. “I am not good at sales.” That statement is untrue. If this were true, they wouldn’t be as good as selling themselves so good on the resume that got them the job where they now sell their time for money. When desire to be better is strong enough, sales skills increase accordingly. Therefore if you truly desire wealth, you would sell recurring services that generates residual income and not your 9-5 (8 hours per day) for money. Selling your time takes away your time freedom. Remember that wealth is the ability of choice without the constraint of money, time, health and happiness. None has to be compromised in true wealth.
3. Hard Work Vs Smart Work: If you do a very hard work running into a brick wall, what progress would that do? Think about the changes you have always wanted in your financial status. Do you keep doing the same things and want different results? That is the definition of insanity. There is no doubt that hard work and work ethic cannot be substituted in success formula. However how you channel your hard work makes all the difference between failure and success in life.
In conclusion, this is a quick IQ test here for you. Would you rather work hard on something that will compensate in residuals or work hard on something that will compensate just once? Would you rather be a resume/personal hour’s sales person or recurring services sales person? True financial freedom does not exist without residual income and time freedom.