I attended an amazing event last night, Wealthylicious Burlington. This very special event is put on a few times a year by some amazing women I know, who are radiant, confident and successful and their passion it to help others to realize their true potential and to mentor them to success too!
I was reminded of a concept that has really changed my life and that is the difference between Linear and Residual Income.
What is the difference between Linear and Residual Income you ask? First, let’s review Linear Income. Linear Income is what most people get. You exchange your time for money and you get paid once for that time. Think about your salary right now, for those who are working at a job, and break it down to what you are paid weekly, then hourly. Likely it’s somewhere between $10 – $50 per hour. Perhaps you’re a self-employed professional, like a doctor or a lawyer – then we’re looking at $300 – $500 per hour. Even as a real estate agent you are still earning linear income. Here’s the challenge, your income will always be capped by the number of hours you can physically work. And if you are sick or injured (or are taking care of someone who is) then your income stops.
What really excites me is talking about is Residual (or Royalty) Income. Here’s how it works – you do something once, such a record a CD, write a book or sign up a customer who enjoys your consumable products. Every time that CD is played, your book is purchased or that customer orders again, you get paid. The beauty is your income is not related to how many hours you personally work. Let’s take a look at how it really works.
When you begin building a residual income, at first there is a much larger time investment versus what you are earning in income. Then when you reach the crossover point, your income starts to increase rapidly and the time investment begins to decrease, until you reach a point where you can walk away and still enjoy the income.
Think of the example of rolling a car up a hill – it’s very labour intensive and difficult at first, but when you start the reach the crest it gets easier to push the car right over the top and then it races down the other side with very little effort on your part. Most people quit before the car even gets halfway up the hill.
Which income would you like to have? For a long time, I lived on Linear Income, but since I’ve discovered Residual Income, my goal is for my family to live off of all of the Residual Income I’ve created and to help 1000s of other people to do the same! Simply put, once you get the money thing out of the way, by have a monthly Residual Income that is GREATER than your monthly expenses – you can spend all of your time doing what you REALLY LOVE!! And that is how we’re going to make changes in our world.
If this makes sense to you, check in below or email me and we’ll connect – would you like to be one of the 1000 people I help to create a Residual Income?