In order to live in today’s time and society, we have to earn; we have to have an income. Money, which comes from our income, is needed in almost all facets of life, we need money to continue to pay our electric and water bills, mortgage of our house, our groceries, and all other kinds of expenses for our variety of needs.
There are so many ways on how to have an income stream; and almost all of them can be grouped into two types, which are the linear and residual income. Both of them give their owners a stream of money, but having a residual income, or having both of them is much better. Learn why residual income is much more advantageous than linear income, and learn how to make one for yourself.
Before we try to examine why residual income is much better, lets first discuss what is linear income. Linearis the traditional trading of time and services for money. Majority of the people on Earth only have this type of income, and according to experts, if you are one of these people, you will most likely end up being in the middle class all your life.
Having a linear income, as the name implies, means that you will only have a fixed amount at the end of the month. You are living paycheck to paycheck, and this income stream stops when you also stop working. You will have no pay when you get sick or absent for some important reason, and the linear income would stop altogether if you are unemployed or retired.
Residual income, on the other hand, is described by financial experts as the income of the rich people. Residual income comes from a product or work of yours which you toiled for one time, and this product or work earns you a money stream that is not only good for a month, but for many times over.
The good thing about residual income is that it pours money into your pockets even if you have stopped working. You can also have both the linear and residual income at the same time; you can create your residual income out of your linear income.
How to Establish a Residual Income Stream
There are so many ways to create a residual income stream, and most people know this, but they just don’t have the initiative to do it on their own. Here are some examples of sources of residual income stream which you can do on your own:
- Royalties – If you are an artistic person, you can establish your residual income through royalties. You can create a song, book, and other artworks and sell it to people. Every copy that is sold by your publisher, you will get a part of your own.
- Entrepreneurs – Entrepreneurs are people that do business; they start companies that create products and services which people will buy. You will, of course, need to work hard to keep the company or business going, but the margin of profits would make it up many times more.
- Network Marketers – Network marketers, earn by selling products and inviting more people in to be part of the network of sellers. Learn more on how to establish a residual income,read vasayo rewiew.