Benefits of a Residual Income Business

August 1st, 2007 | stacey | Financial Freedom, Financial Independence, Residual Income, Residual Income Opportunity

We have heard about the benefits of having a residual income business, such as additional income without having to work all the time. It is important to understand the difference between linear income and residual income to help you make the best decisions to change your life and achieve true financial freedom.

The way you earn money is what separates the wealthy from the working class. Basically, you can earn linear income or residual income to make a living.

Linear income is earned by employees, self-employed business owners and independent contractors for spending a certain amount of hours completing a job. To earn linear income, people need to be present and clock in to get a paycheck. As a linear earner, you can be down-sized or fired at any time. When you earn linear income, you can’t leverage your efforts and time. A company buy out, despite the fact you do a perfect job, could cause you to be let go because you are in the wrong place at the wrong time. When you earn linear income, you have no control over the situation. Your success, level of achievement and earnings are determined by your boss and not you. In fact, often your boss can get credit for the rewards of your hard work.

Although self-employed people have more control over their personal achievement, earnings and time, what would happen to the business if the owner gets in an accident and is hospitalized for three months. Self-employed folks are certain to miss that money!

As a linear earner, you often live paycheck to paycheck and cannot pass down your job as an inheritance. The other option is finding ways to earn residual income.

Residual income earners own businesses, are network marketing associates and investors. Income is continually generated after the initial effort of building the business. As a residual income earner, you don’t need to clock in, you can leave your business and still earn consistent income.

Leveraging is using someone else’s time and money to benefit you. If you are a linear earner, you boss is earning money from your efforts. This separates the wealthy from the working class.

When you earn residual income, you are the boss and have control over the successes and achievements. You can pass your business on to your children. You benefit your business by helping others become successful. When you are a linear earner, you are hustling for a paycheck whereas residual earners hustle for financial and personal freedom.

The benefits of a residual income business can give you the financial independence and extra time you always dreamed of.