Residual, Passive or Recurring Income is that which continues to be paid to you after the initial effort to generate it has ceased. In other words an ongoing permanent income for a one off or short period of work.
This contrasts with what most people do - which is to swap their time for money. Or put an other way, an hourly wage in exchange for an hour's effort. The problem with this traditional way of making money is that there are only 24 hours in each day! So it is impossible to earn more than 24 times your hourly rate. (And how long could you continue to work 24 hours a day?)
One of the huge benefits of generating a Residual Income is that once you have set up one line of income you are free to set up many more, safe in the knowledge that each is ongoing. This is known as "Multiple Streams of Income" and the leverage provided allows individuals to earn considerable amounts within relatively short timescales.
It would not be hard to imagine your earning potential if you discovered how to make say $1000 a month in residual income, and then repeated the process a few times!
The most well known ways to earn a residual income are writing a book and writing songs. Both will pay you an ongoing income each time a copy is sold or performed/played on the radio etc.
But I Can't Do That!!!
Obviously unless you are blessed with talent in these fields they are not going to bring you the sort of money you desire, but there is a type of home based internet business that generates exactly this recurring residual income stream.
This work from home business is called many things, Affiliate Programs, Associate Programs, Reseller Programs, Referrer Programs and many more. Most of these will provide you with one off commission type payments, but a proportion offer just what we are looking for - passive ongoing income that keeps coming in week after week, month after month and year after year.
The best program we have found which enables you to bring in $2000 a week Residual Income is the Adwords Miracle Residual Income System. Click Here for a review of this proven home based business.
The following article explains just how powerful passive or residual income really is!
What does becoming rich mean to you? Is it early retirement? Perhaps it is the big house and the fancy car. Do you want the personal freedom that comes with being wealthy? Knowing you could go anywhere in the world you wish at anytime. Imagine knowing that your children and even your grandchildren will be taken care of financially after you are gone. Becoming rich is not a birthright or a random act of chance, it is a choice. So the question is, do you choose to be rich?
What is the definition of wealthy? It is not someone who makes a lot of money. A doctor with a six figure salary could still be considered poor if he/she spends every cent they make. The true definition of wealth is someone who makes enough money to live without having to work. That is, their monthly passive income is greater then their monthly expenses.
So what is passive income? Passive income is essentially money you earn that did not require your constant presence to do so. If you stopped showing up to your job you would no longer earn a paycheque. A passive income opportunity may take time initially to set up. However, if done right you will be earning passive income even as you sleep. This is also known as residual income, or leveraged income. A good example is a home that you rent out to a tenant. Once you have bought the property and set up the systems of management there is very little for you to do except collect the money from your bank account. Another example would be financial instuments that pay you a monthly yeild, such as a bond, a dividend or a distrubution. These are but just a few examples. The wonderful thing about passive income is you no longer have to trade your time for money. If you choose to be rich then passive income will be your investment of choice.
Try this exercise to calculate your personal wealth ratio. Add up all passive income you have earned over the past month. For this exercise do not include paper assets such as stocks and bonds. Divide your monthly passive income by your monthly expenses to get your wealth ratio. If that number is one or higher, you can consider yourself wealthy. For example:
$200 (passive income) / $2000 (monthly expenses) = 0.1 (wealth ratio)par This individual has enough passive income to cover 10% of their monthly expenses. Those that choose to be rich make it their goal to achieve a high wealth ratio.
We're just a couple guys you want to educate people, like we've been educated, to help them become financially free. Learn more about us at http://www.choose-to-be-rich.com
