Passive Income. Residual Income. Additional Income Source. As it relates to wealth building I am sure you’ve heard mention of one or all of these terms. They all essentially mean and offer the same thing. They’re all are income that is made when one is not actively involved. They all offer FREEDOM/INDEPENDENCE.
This type of income does at times have some (or lots) of work upfront. Some opportunities may also call for an investment. Despite the contribution you may find that it is the best investment of your time and/or money.
Here are 3 reasons why I am a huge proponent of people, especially women, creating residual income.
- Independence: I practiced family/divorce law for many years. I saw many woman that were facing divorce and the possibility of losing it all. I have represented wives that spent most of their lives ensuring that the needs of their spouse were met. At some point the love was lost and many women found themselves having to stay in these unhealthy marriages. They felt as though they had to stay simply because they did not have the financial means to move on. Having residual income could have been the solution. I am not encouraging anyone to build residual income for the purpose of leaving a marriage.. NEVER..lol. Build the income to take a great vacation with hubby or create a savings with (or without if that is your choice) your hubby.
- Security: I am sure you have heard many fears that Social Security may not be available when you are ready to retire. You may have also heard reports of many losing their 401k savings in the stock market. You may have been or know someone that has been part of a surprise layoff from work. There are so many things that can happen and/or go wrong 20 or even 10 years from now. Create a little security for yourself by obtaining a residual income and saving every penny. It would be money that you will not have to depend on an employer or the government to provide for you. Nothing is guaranteed; so why not depend on yourself.
- Freedom: An estimated 76% of Americans are living paycheck to paycheck. These are not just people that are paid low salaries. There are many that make 75k or more and are still living paycheck to paycheck. Why? Because the majority of people are over spenders. Having a residual income and cutting down on unnecessary expenses can be the key to helping families have more financial freedom and less stress. Having a disposable income will allow more freedom to travel, to take a day off from work and to ultimately spend more time with your family.
Residual Income can eventually replace and possibly exceed the income paid from a 9-5 gig. To create this income you can become an investor in a business, become an affiliate salesperson for a company you admire or you can start your own business. Here are a few tips I shared to help start a business with very little money.
Comment below whether you are a business owner or a 9-5’er and let me know what project you will begin to earn a new stream of income.