Residual income is also known as passive or recurring income and is 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 has been completed. Such income helps you earn more while working less as it continues to pay recurrently for work done once.
The Difference between Earning a Salary and Residual Income
If you are working on a job and earning a salary, there is a 1 to 1 ratio between the hours of work put in by you and the dollars you earn. You would stop generating an income when you stopped working. 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.
To earn a residual income, you do need to put in long hours of work but the rewards are for a longer duration and continue to come in even after you stop working. Thus, compared to the time invested, your returns are higher and you will continue to earn a recurring income on your initial investment.
Sources of Residual Income
Types of jobs that can provide you a residual income are freelance writing jobs and multilevel marketing jobs. Royalties can be earned indefinitely if you write and publish a book. Alternatively, you can earn Internet revenue by advertising on the net. Marketing on the Internet requires very little investment of both money and time and once established, can generate plenty of residual income. Owning a property and renting it out can also provide you with residual income as can dividends earned from investing in stocks and securities.
How to Make Residual Money Work for You
Most people think that there is no work involved in the earning of a residual income. This is not true. At the outset, it's necessary to work very hard in order to be successful. You will have to continue working hard even after the program has been established in order to ensure that you get results. Since you are the boss, you can only blame yourself if anything goes wrong and you would be cheating yourself and nobody else if you try to shirk off work.
Increasing Your Earnings
It's essential that the team you chose to work with can provide both talent and hard work. Also, make sure that the mode of generating income is best suited to your temperament and the amount of money you can afford to invest. Once your residual income mode of money making is in place, you will reap the benefits geometrically and this reaping of benefits can continue indefinitely.
The misconception that you can earn a residual income without working should be disregarded. You need to work smart not hard to earn this form of income.