Residual Income
Residual income is the idea at the heart of this web site. It is income that you continue to receive long term after expending an initial effort.
For example, you might put in the initial effort to write a book. If the book becomes a best-seller, you will receive royalties from sales. When readers are buying your book you may be relaxing on the beach. Your work on writing the book finished long ago but you keep on receiving royalties.
Another example is creating a business that earns you ongoing income even though you no longer work in business the day to day. This is the ‘turnkey business’ – the idea that Michael Gerber wrote about in The E-Myth Revisited.
What is the attraction of residual income?
I think that it brings a sense of personal freedom, and also of financial security. If you only receive money when you work, what happens if you are sick, or if you want to go on holiday, or when you want to retire? What happens if you want to take time off and go travelling, and yet you have a family to support?
Imagine that you received sufficient residual income to cover your family’s day to day living expenses. Then you have more choice in your life. You can work or not work. It is up to you.
But, unless you inherit money or win the lottery, you can’t just be lazy on this from day one. You can’t just lie back and expect someone to give you this money.
Step one is to build a source of residual income. This helps you move from the left hand side of Robert Kiyosaki’s Cash Flow Quadrant to the right hand side. That’s what this web site is all about. |
