You are exchanging your time for some amount of money that you and your employer or client have agreed on as being reasonable for the services that you are providing. Most people are familiar with and participate in this type of income stream.
Passive income, however, is money that you earn while you are not actively engaged in the work that produced it.
Passive income can take on many forms, but one form of passive income that you may be familiar with is residual income. Residual income is money that you receive on a daily, weekly, monthly basis that stems from work that you performed once.
I believe that every person that works as an employee or a self-employed business owner should position themselves to be able to create multiple streams of passive income in addition to their earned income source.
In as little as three to six months you could start to see extra money coming in that can help pay a small bill, pay for emergency expenses, or start building up your savings account. It will require an initial investment of time and in most instances some amount of money. But by positioning yourself now, in one to three years you could have a substantial income source to help sustain you in case of a job loss, to finance a major purchase, or to fund a vacation.
If you are already a business owner, you could easily develop multiple streams of income that naturally stem from your primary business and increase your monthly revenue.
This allows you to leverage yourself so that you can grow your income. There are only 24 hours in every day. We can’t get more hours, but we can get more money out of those hours by developing a passive residual income stream.
For more information on developing multiple streams of passive residual income, contact me!