Before anyone gets all wacky and starts wondering what financial freedom has to do with living an optimal healthy (balanced) lifestyle, I am sure we agree that while money cannot buy happiness, lack of money to cover basic necessities sure makes life overly difficult in all areas!
For my entire adult life I have worked and depended on a paycheck from an employer to provide or produce the income needed for home, health, groceries and occasionally a special indulgence now and then.However, it didn’t take me very long in the workplace to realize income was always tied to hours on the clock. As soon as I was unable to work….income ceased.
Only very recently have I begun to understand there is a way to (in time and with hard work for 2-5 years) to have income continue to come in without my clocking in to a schedule and jumping through hoops to secure someone else’s future at the expense of my own. The answer is building a source of residual income.
So what is residual income?
“Residual income (otherwise called recurring or passive income) is a regular source of income that continues to be generated after the initial effort has been expended.”
Some examples of residual income include:
Interest from stocks, bonds, or savings
Income from rental properties
Royalty payments from books or movies
Income from commissions from recurring sales
A weekly paycheck or one-time payment from purchases or services rendered is a linear (or one-shot) income. Linear income demands constant work and output for income to occur.
I am currently working to build a team that will work together to provide me with a stream of residual income within the next 3-5 years. That will be around the time many of my peers are looking to draw on their social security. It is my opinion that relying on social security payments as an option in 3-5 years carries far more risk than investing in a plan to become an entrepreneur and establish a residual income source. The added bonus of having a source of passive income no dependent on the government is increased income at at time when many people find the need to downsize or cut corners trying to stretch a meager monthly check is a huge motivation for me to put in the time ane effort now to make it happen. (My personal opinion is that social security ‘benefits’ may not even be an option by then at the rate the government is dipping into those funds).
Building a business that can be run from anywhere in the world, around a schedule that works for me is not an overnight project! It will require a concentrated effort and an investment of time, money and investments in learning the ins and outs of recruiting and motivating a like-minded team of enthusiastic entrepreneurs.
I am building a business around products I love and a company I totally believe in and I am already a part of an amazing team of leaders that have not only shown this the potential of what is possible, but they are available to help and encourage every step of the way.
Stay tune for more about my business and why I decided what company to work with in the next blog post!