Do you know the difference between
Linear Income and Recurring Income?
That difference could make the difference as to whether you are headed to wealth. - Or to Bankruptcy.
Linear income is selling your time for dollars. That is the only income that over 90% of the people in the world ever have. You are trading time for money.
This is true for everyone who works at a J.O.B. - whether that job is as hotel maid, a factory or office worker, or a brain surgeon – and all jobs in between.
The only difference between the maid and the brain surgeon is the amount of money paid per hour or per job.
For that reason they are not and never will be financially independent. Linear Income, also known as work income, means you receive a paycheck based on how much work you do. You need to put in certain number of hours every week.
When you stop working, your income stops. Linear Income requires continued work. You get sick – the work stops and the pay stops. You retire – the pay stops.
Recurring Income is different. It is the most powerful and profitable source of income. Recurring Income is the income of the rich. It is a source of income that keeps coming in on a regular basis, from work you do once - meaning even when you are not working. Recurring Income is not about "get rich quick" - the principal very much misunderstood by many people. It requires effort, determination, especially in the beginning... and some time for the magic to start working.
So, how can you get recurring (or residual) income?
By doing ANYTHING you can do once, then get paid for over and over. Some examples: Write a book or a song – collect royalties for life (assuming it is good).
Actors in a movie get paid every time the movie is shown.
Start a business or create an internet software application.
Dozens of other things. But what is the catch for most of us? All such are out of reach for us.
But there are Residual Income business opportunities. Your earning potential is unlimited. It is the best retirement insurance - and the only method for most people.
Of the over 6,000,000 millionaires in the USA today, 20% who have reached affluence in the past two years have done so by leveraging their time... and they did it using something called referral marketing, or affiliate marketing.
It is no wonder that the likes of Anthony Robbins, Donald Trump and Robert Kiyosaki are such passionate advocates of referral marketing and developing residual income streams. As the latter says: "The richest people in the world build networks, everyone else looks for work."
You have residual bills; why not have residual income?
Linear Income: With a job, you trade time for money. At the end of the week, your boss pays you for the work you did that week. The next week you start from zero. You have to put in the work again to get paid. Linear income is directly related to the number of hours you work. If you work 40 hours, you get paid for 40 hours of work.
Residual Income: Unlike a paycheck from a job, when you develop a “residual income” you don’t have to start from zero every week, or every month. You don’t have to start over from zero ever again. Residual income means never having to “start over.”
Why? Because when you earn a residual income, your income compounds from the work you are currently doing and the work you have already done! The work you did last week continues to pay you this week, as does the work you did two weeks ago, and three weeks ago, and four weeks ago, etc… all the way back to the week you first started earning a residual income.