What is residual income?

3 reasons why you should start creating a residual income now and why it is more achievable than you think. Let's start by defining residual income as most people don't really understand what it is and why it is so crucial to have one.

Residual income is a type of income where your earnings come to your bank account regularly independent of your own effort after you built a system or a business. It is very different from an active income where you are exchanging your time for money. Here are 3 reasons why you should build one now whether you are an employee, self-employed or a small business owner.

1. Unfortunate circumstances. We never know if you get sick or get fired from a job anytime. Once this happens, your income will automatically stop as you are just basically exchanging your time & effort for money.

2. Having a residual income is like having a duplicate of you. Imagine another you working and adding more income to your household. Would that be nice to have extra £300, £500 or even £1,000 a month on top of your current income. That could pay your bills, car loan, mortgage or a holiday.

3. Working smart rather than just working hard. Most people are stuck in a hamster wheel. No matter how hard they work they still end up short and some worked hard for years and still end up broke. Obviously spending less than you earn is the best solution but when you also build a residual income it will not only provide you a comfortable life but also long term financial security.

Even if people are convinced with these reasons, one of the challenges that is stopping people to take action is the lack of time. Most think that they are already so busy with work and no chance they can do this. But the reality is that hundreds and thousands of successful people proved this wrong. In fact, today you can start building 3-5 hours a week with support from successful people with a very low start-up cost while still working on a full time job. It's really a matter of opening your mind for opportunities around, learn and take action you you can improve and take charge of your economic future.

Cary Lam P.S. If you ENJOYED this post, please make your comment and feedback. P.P.S. You are welcome to SHARE this post on your Fan Page and make sure your team members read it and keep this for your future team members too.