The Best 3 Ways to Create It and Earn It for a Lifetime
You’ve thought about it before: creating several streams of passive residual income to live off of. But most people feel that is easier said than done.
And I'm not just talking about the passive income that requires work – I'm talking about residual income streams that work all the time, even when you're sleeping.
So how does a regular person create residual income?
Obviously, we know it’s being done or people wouldn’t be creating a buzz all over the internet.
In fact, here are 3 of the smartest ways to build residual income.
Purchase a Rental Property
In most people’s lifetime, Real estate has been a good investment. It has been proven to be one of the longest standing best investment available to anyone who has the funds and can make a good judgement on the marketplace.
Early on in my business career I have a duplex that I had purchased from a friend which created a small residual income after the mortgage was paid. At the time, it yielded some nice tax advantages.
What holds most people back from creating passive income with real estate is the cost of getting another mortgage and the down payment needed to make the purchase.
Invest in the Stock Market
You can buy stock in companies that are publicly traded which creates and opportunity to create passive income. This is how people in the “I” quadrant do it as Robert Kiyosaki explains in his book, Rich Dad Poor Dad.
Having your money work for you is how wealth is created.
Build a Network Marketing Business
This is my favorite and I feel the best way to achieve residual income with the lowest risk, as the investment to start this type of business is minimal.
With over 100 million people worldwide involved in the Direct Selling industry the sales revenue generated is over $182.6 Billion dollars. In comparison to the NFL which is $9.5 Billion, the Music Industry is $15 Billion, the Video Gaming Industry is $76 Billion and the Movie Industry is $88 Billion.
Needless to say, the MLM/Network Marketing Industry is practically the largest industry in the world.
For many years the Network Marketing industry has gotten a bad rap from it’s past as yes there were some shady characters in the industry. With all the regulations that are now in place the industry has been shifting into a true profession.
I am proud to call myself a Professional Network Marketer.
The key factors today are still picking the right company in the right industry.
You want a company that has a management team with a vision for creating a multigenerational company, one that will live-on beyond your lifetime.
Second, you want a company that has a product strategy that can stand the test of time. Science and technology continues to change and a progressive company must change their products to be viable products in their market.
Third, you want to make sure they have a compensation plan that will pay you and your team fairly for the efforts that you make in building your residual income.
I am involved with a company that knows the representatives in the field are the life blood of their business so they have created a 50/50 partnership with them. Click Here to learn more.
Fourth, do they have a training system in place to teach new representatives how to build a successful business.
Let’s Now Talk About Why Do You Want Residual Income
You have probably heard the expression that “the rich get richer while the poor get poorer.” It’s often used to explain the unfairness when it comes to money.
However, I don’t think this is unfair at all. The reason it happens is because the rich focus on a completely different way of earning money. There are thousands of stories about poor people who accumulated great riches and this choice is available to all of us.
Warren Buffett, Bill Gates, Richard Branson, and Oprah were not born into riches. Yet over their lifetimes they’ve amassed huge personal fortunes. This is because they understand and use the power of leverage through residual income.
What Is Linear Income?
Linear income comes as a direct result of our efforts. This is when we work for one hour and get paid a certain amount for that hours work. You are trading your time for wages. This can be seen in career people that are self-employed service providers like photographers, lawyers or doctors.
There are many people who get paid vast amounts of money to become the CEO of a company, play professional sports, or star in a movie. Earning a high linear income is often a lot of hard work and requires a dedication beyond most of us. It’s also limited because no matter how much money you get paid you still need to show up to work to earn your money.
What Is Residual (Or Passive) Income?
Residual income is when you continue to get paid after the work is done. This includes royalties from books, movies, or songs and also income that comes from real estate or business investments where you don’t actually have to be present to earn it. For example, Bill Gates is still making a residual income from Microsoft even though he isn’t working there anymore.
Residual income comes from building an asset that continues to pay you after the work has been done. A book, movie or song is an asset to the people earning royalties from it. A house is an asset to the landlord being paid rent and a business is an asset to the business owner who does not need to be involved in the day-to-day activities anymore.
As Jim Rohn was famous for saying: “I’m working full-time on my job and part time on my fortune. But it won’t be long before I’m working full-time on my fortune. Can you imagine what my life will look like?”
Advantages to Residual Income
Of course, before the money starts rolling in you will have to put time, effort and money into the business your network marketing business. You’ll need to be patience and have determination to create the residual income you desire in the future. Instant gratification is not possible when it comes to residual income. Nor is your ability to predict the future value of the money you will be earning. To me that is one of the most exciting aspects of build our MLM business.
Do you realize what it takes in monthly income to live in retirement and not have to worry about money?
The following is based on earning 5% interest
Money Invested a
Currently the average baby-boomer has $88,000 upon retirement. That would produce about $366 per month in passive income. Now your relying on the Government to fund your retirement.
Most people do not realize that there are 10,000 baby-boomers reaching the age of 65 everyday here in the United States. This will continue to happen for the next 7-10 years.
So, in conclusion…Regardless of what business you are in, chances are there is a person somewhere along the line who is buying your product or service. Whether you are a business owner, real estate investor, network marketer, or professional coach, you need people – the right people – to make your business grow.
The greatest mistake people make when it comes to their network is that they think that just having someone’s name and phone number means they are a part of their network. If that is the case, all you need is a phonebook from 1999 and you have a “huge network”.
The reality is that your TRUE network is measured by how many people know, like and trust you. How many people are excited to take your phone call? How influential are those people?
The answer to that question determines your network; and as Robert Kiyosaki says..."Your Network Is Your Net-Worth".