The money you receive based on the time you spend at work is called linear income. You get paid dollars for hours based on the value your employer places on what you do for him/her and governed by an award so you don’t get ripped off. You go to work for a week, two weeks or a month before you get any pay and in many cases it is one or two weeks after you have worked that you actually receive the pay.
Further, you have a limited number of days allowed for sickness and a set number of days for holidays based on how many months you have been working for a particular employer. If you choose to take further days off for sickness or holidays you will not get paid. If you choose to quit your job your employer will not choose to pay you anyway. If you are injured or become too sick to work anymore you will not get paid by your employer.
Linear income has its limits. Do the hours, get the dollars. Don’t do the hours, don’t get the dollars. Do more hours, get more dollars. Do overtime, get time and a half and double time. More hours, more dollars. How many hours can you work? There is a limit to how efficient you will be if you work too many hours and the less efficient you are the more likely you are to be dismissed or have your hours reduced. This income is more in your employers control than yours unless you are clever enough to make yourself so indispensable that you can charge whatever you want to do the job. Not something most of us can pull off.
You could work for yourself. Then you can pay yourself whatever you want. So start a business, pay a whole lot of money to get it off the ground and pay yourself whatever you can afford. Most of the time this is less than you would get from a job and you are bound to spend much more time on the business than you will end up paying yourself for. Even if your business is a huge success and you end up with lots of money, when are you going to have time to enjoy it unless you employ a couple of people you can trust to run the business while you take time out and pay them more than you were paying yourself.
Traditional business income is still based on trading dollars. The difference is that the dollars are traded for products or services. These products and services are paid for once. Stock is purchased for more sales or clients are acquired to pay for your services. This income is still linear. Stock for dollars, service for dollars. The more stock, the more dollars but you don’t have time to provide more services so you need to hire people to help you get through the work.
So in a successful traditional business where you have employees and pay them linear income, sick leave and annual leave, you could make money. You could make a lot of money. Again, no matter how much money you are making, the time you are leveraging by having people work for you, if you are a good business person, will need to be spent on building the business so you keep making money.
Leveraged income is all very well but it’s not likely to give you back your time. In fact you are more likely to need to spend more time looking after business as you grow. This income is still based on provision of a product or a service and is limited. Unless you have plenty of dollars up front to hire lots of staff to fulfill orders and provide services and to purchase stock there is a limit to how much you can earn.
Michael Jackson still makes millions of dollars a year on the work he did throughout his life. Even Elvis Presley is still earning millions. This is called royalty income. The production work is done once and the pay comes in every time a record is purchased or played on the radio or TV. Their estates are still earning off the work these two stars completed years ago.
So let’s all write songs and sing and dance and make royalty income for the rest of our lives and for generations to come. One problem – not many of us can move like Michael or Elvis let alone sing that great!
There is a way though! If you want to get rich like rich people, you should do what rich people do. What’s that? They don’t work for money, they have money work for them.
Income that is derived from doing work one time and receiving income from it month after month is the kind of income telecommunication and energy companies enjoy. They pay a lot of money to generate this income – staff, advertising, storefronts, maintenance etc. If there was a way to bring customers to these companies and get paid a percentage of their bill for the life of their use of the service that would be pure residual income.
Multi billionaire and presidential candidate, Donald Trump, was asked in 2006 to endorse a company that had been operating in North America since 1993. His legal team went to work to check out this company, concluded that is would be a good investment and offered to buy it. Since it was not for sale he settled for endorsing the company. Today this company is in 24 countries on 4 continents and growing. Mr Trump said they have “a winning business model – and I mean winning!”
Mr Trump also said “direct selling is actually one of the oldest, most respected business models in the world and has stood the test of time most importantly.” He goes on to say that this company “approaches it with a fresh perspective that you won’t find anywhere else. I know,” he said “what it takes to be a success.”
This company started by acquiring customers directly and bringing them to a telecommunications company to generate residual income. The founders partnered with others to help them acquire customers. These partners received residual income – not linear income. As the company grew and formed partners with other companies to provide services and generate residual income, they started to launch the business model into other countries. Learn more here.
More Money In Less Time
Residual income is great! You end up with more and more income as you spend less and less time. It takes time at first until it is generating enough income then you can sit back and watch the money roll in. You can spend all the money in your account and it will magically reappear the next month because you worked hard
for it in the beginning. It takes vision, drive and determination to stick with it until it pays off.
The roller coaster comes to mind – you don’t jump off a roller coaster while it is still going, you keep the bar down and hold on till it stops. You get on the roller coaster on purpose to enjoy the ride. The ups and downs, the thrills and scares are all part of the plan. Know this, when you embark on the journey to residual income, keep the bar down and hold on till you get to more money in less time!
Time To Enjoy Your Money
Once you have made this incredible journey, enjoying every moment, keeping the bar down and learning to manage whatever comes along, you will have the rewards. You will also have some difficult decisions to make like:
- Do you want to stay in your linear income job?
- Do you want to stay living where you live?
- Do you want to change your wardrobe?
- What car do you want to drive?
- When and where are you going to holiday and who with?
See? difficult decisions! Maybe not as difficult as the decision to get out of bed in the morning knowing that you are going to work to make your boss wealthy and your pay is already spent before pay day. Now you can spend all the money in your account knowing it will be back the next month for you to spend all over again!
My Reason Why
Recently John and I spent a week with my daughter and my four grandchildren in a resort by the beach. I want to do this more often. I want to pack up and go visit my sister in Arizona – I’ve never met her husband and son. I want to visit the Young Living Essential Oils farms at planting and harvest times, I want to take John on safari in Africa. Without residual income there is no way I will be able to do these things. I’m working hard to build this NOW! What is your reason why?