![]() ![]() Taking action is the most essential skill you can learn to improve your finances. The key here is to know there is work upfront, and you must do it. What we mean by residual and passive is that once you have put in the initial effort ( active income), the revenue generated becomes a passive stream of extra cash requiring little to no additional effort. On the contrary, everything requires effort and some hard work front, especially when it comes to finances. And, there are very few examples of entirely passive residual income streams. NOT ! There’s no such thing as get-rich-quick schemes ignore the hype and scammers. You need to give them $10,000 for their program, and you’ll be all set. We aren’t talking about those spammy bloggers who assure you that you can earn thousands while you sleep. However, we don’t want you to get the wrong impression, so we feel like we have to clarify what we mean by passive. Yes, passive income ideas have become buzzwords around the personal finance interwebs. Nothing is passive when it comes to earning real money. But first, let’s clear a common misconception. That’s a business.īuilding residual income must be passive, and there are a lot of opportunities to add this type of income to your financial tool belt. Second, building residual income requires minimal to no effort by you to maintain it… over the long term ! This means that you shouldn’t be putting in 20 hours a week to keep that income coming in. ![]() Think of payments that are relatively the exact amounts coming in monthly. There are a few key points here.įirst, residual income is a predictable and regular income stream. Residual income measures net income after considering all required costs of capital related to generating that income. My rich dad taught me to focus on passive income streams and spend my time acquiring the assets that provide passive and long-term residual income …income from capital gains, dividends, residual income from business, rental income from real estate, and royalties. Or, as one of our financial heroes, Robert Kiyosaki, puts it: Residual income is an income source resulting from cash flow received on a regular and predictable basis, requiring minimal to no effort by you to maintain it over the long-term. MEANING OF RESIDUAL INCOME HOW TOSo let’s learn how to make more money and do less work. If you screw up your finances, you could be in some long-term pain. There are few things in life as beautiful as residual income.Īlthough it’s easier than ever to earn passive income with online platforms and tools, getting started and figuring out exactly where to start can be overwhelming. No matter the cause, people find innovative ways to earn residual income. ![]() It could be because Americans are seeing record levels of consumer debt. This could be because of the explosion of online platforms that allow people to earn residual income and open them to different income sources. Over the past few years, there have been epic growth in people seeking opportunities to put more money in their pockets with residual income. ![]()
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