Residual income, also known as passive income, is an income received on a regular basis with little effort required to maintain it. It’s fairly easy. Doesn't it sound great to make money without having to work? Of course it does. This powerful type of income is a big, yet simple step to financial freedom. There is also linear income, otherwise known as working 40 hours a week until you retire; and at the rate that the economy is going with traditional jobs, sadly, you may never see retirement. If you work 40 hours, you get paid for 40 hours and that's the end of that; whereas with residual income, you could invest 40 hours of your time into a project and get paid for it for the rest of your life, not just that week.
There are countless easy ways to obtain residual income such as: book royalties, property rentals, affiliate programs, creating software products, pay per click campaigns and more.
With advantages there are also disadvantages. The obvious advantages of residual is come is that you get income without a continued effort and have financial freedom. A few disadvantages that you should be aware are: slow and uncertain income. You may be used to seeing generated income very quickly especially if you come from a linear income background. With residual income, sometimes the results are instant but there are many other times when you will not see any income for weeks or even months. Depending on the type of method that you use to generate residual income, the amount of income you get can be uncertain. For example, if your residual income is based on 'pay per click' campaigns on a site that you own and operate, your income will fluctuate based on the amount of traffic it gets from month to month.
Residual income has a lot of power and has the potential to be very profitable. It is a major step to financial freedom and no longer having to work all week. If you do not want to be stuck working 9 to 5 all week for the rest of your life, residual income would be a great, easy great way to break free of that. If you are unsure about this method of obtaining profits, just slowly transition into it. You can still work your 40 hours a week for a secure upfront income and then as you began to see significant profits generated through your residual income, you can consider never having to endure 40 hours of weekly labor again!
