Earn Residual Income Rather Than Linear Income

October 16th, 2007 | stacey | Financial Freedom, Financial Independence, Residual Income, Residual Income Online, Residual Income Opportunity

When you earn residual income, you are able to maximize your money and make it work for you. Those who are making a residual income online have total control of their finances and can earn as much as they want. Is that possible with a regular job – also known as linear income?

Let’s consider the question. Forbes reports that 86 percent of the people in American earn $250,000 or less annually, which is only 26 percent of the net worth pie. The bottom line is that only 10 percent of the people earn in excess of $350,000 annually and that 10 percent is actually controlling 68 percent of this country’s net worth.

These statistics are meant to open your eyes to how money is really made. Think about an average salary of $40,000, which is what most people generally earn annually. You are earning $16 an hour before taxes are taken out and about a third of your income is paid out in taxes. The bottom line is you are really making around $11 hourly for your efforts. Clearly there is higher earning potential in a residual income home business.

Further, if you earn an additional $10,000 annually, you will wind up taking home about 4 bucks an hour more. This formula does not seem to be the key to financial freedom.

So how do you earn residual income? You can have an affiliate marketing business, website or blog. You can invest in stocks, bonds and real estate. You can have assets in a savings plan that yield enough interest to pay your expenses.

When you earn residual income, you appreciate benefits such as control over your own earnings, creating security, super tax advantages and the ability to prioritize your own way. Residual income is the way to attain financial freedom and be in control of your own destiny.