There are majorly two streams of income which are: Linear income and Residual income. In the world today most of us are financial illiterate and we are told to go to school, read our books, get good grades, get a nice job and work hard to be promoted to earn big money but to me that is not the best approach to life, with this we are only trained to earn linear income which is based on paid salary or wages for the number of hours we work per day. This type of income comes once after working hard for an employer and if you don’t show up for the work then you earn nothing, and I really do not believe we should all rely on this source of income alone like many bankers, doctors, and others do and a lot get broke after retirement from their work.
Residual income on the other hand has to do with you working hard once and it unleashes a steady flow of income for months and even years. I mean you get paid over and over again. In this type of income you don’t just work for money but money works for you and this is the secret of many wealthy people in the world today. I want you to learn more about this stream of income, I mean how money can work for you while sleeping rather than you working each day for the money. If you have a business that requires your attention each day and nothing happens except you are there then you have not really built a system that can bring you residual income. Build your business to a stage that even in your absence it will function and also make great money. This is what I call real business and that is what the wealthy do and as a student you must begin to think in this direction and I believe you are not too young, if you believe you are too young, very soon you will say you are too old to try it. Let me share few examples of residual income opportunities with you so that you too can begin to look beyond working daily for money instead allowing money work for you;
- Savers earn interest: Yes, saving money with a good bank and a nice cooperative can actually bring you a little interest on it per month or per year and it is nice because you are not working for it but rather your money is working for you.
- Song writers earn royalties: if you are gifted in writing songs or singing this is for you, there are many singer and song writers in the world that earn money from their nice song which they work hard on once but keep earning continuously from their past work.
- Authors earn royalties: Many authors including myself earn royalties from books which I worked hard to write and publish but it continuously brings me money without moving from my room or putting an end to what I’m doing. If you are gifted in writing like me this is a great opportunity to earn residual income.
- Entrepreneurs earn profit: all you need is to sow a little capital into an idea with patience and determination in a very little time you will start to earn profit from your business continuously especially if you have a nice product that people need or a service wanted by the masses.
- Investors earn royalties: cultivate the habit of investing from youthful age. Don’t just know how to spend money but learn how to make money too. Investing in shares, properties, gold, business are great ways we can earn money without working for it.
- Landlord earn rents: This is a great source of residual income because shelter is also a core need of man, all that is needed is a one-time investment and you will earn for life through rent gotten from your properties.
All I want you to learn from this is that you don’t always have to work for money but learn to make money work for you too and continuously earn residual income.