Is Residual Income Good?

I don’t know why the question “Is residual income good” gets asked but let’s answer it once and for all.

What is residual income?

Residual income is income you receive on a regular basis without doing the work needed to create it any longer. This means you did some work to build a business, buy a rental property, or build a website, etc and now you simply maintain that asset while it continues to generate income for you.

Why does everyone want a residual income?

Society has taught us all to work towards retirement and if you didn’t know, most retirement checks individuals earn are via an annuity, which is a form of residual income.

We all want residual income because it is freedom from worrying about how you’ll pay your bills, and make ends meet. It gives you the time freedom we all dream and imagine having when we talk about financial freedom.

there’s no safer way to guarantee your finances than by building residual income sources. There’s no better way to protect your family than by teaching them to do the same thing.

Is residual income good??? How could it not be good? “No sir I don’t want a monthly check I can guarantee to receive that’s just greedy and rude of me to do”.

Are you kidding me? Who would say that! Alright, here’s a long-winded explanation of why residual income is good.

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Reasons why residual income is good

1. Self-reliance

When you build passive income you no longer need to rely upon an employer for your full-time income. Creating residual income, even just a portion of your current income can many times give you that feeling that its possible to get out of the crushing weight of debt, and constant go go go.

The regular income creates financial stability that you just cant’ get from working for an employer. Even if you really love your job, the fact that your paycheck is based on hours worked you’ll always “have” to go in every day in order to earn a check. Even with salaried positions you still have to go to work otherwise the employer will have to replace you for lack of work.

This just isn’t how residual income works. As the provider of a product or service that others use on a regular basis you will continually receive that income nearly no matter what happens in the economy. Even if things do drop apart somewhat, having the knowledge that allowed you to build it in the first place will allow you to rebuild if needed.

Almost everyone knows how tough it is to live paycheck to paycheck. It feels as if you are making no progress at all, working 40 or more hours a week only to find yourself unable to take care of things that come up, buy new things you want or need, just to name a few problems.

2. Time freedom

If you were to build the same amount of residual income as you have job income currently how would that change your life? Would you spend the same amount of time running around working? Would you finally be able to take the time to go to the gym? Would you then decide to learn a new hobby like an instrument, and start writing a book you’ve always wanted to?

Really think about it because with the residual income you are in a position to dictate the way your life goes as opposed to having someone at your job dictate when, how, or why you will use your time.

3. Financial consistency

Having income come in on regular basis is truly beneficial to your financial life. It gives you a much stronger backing if you need to get a new loan, wants to look for more investment options, or find a new place to live.

4. Live your life now not later

Having consistent income allows you to do the things you like rather than feeling you have to go get a job solely based on the wage to provide. If you find yourself in an area where wages don’t pay well enough for you to be a teacher and fully provide for your family then you may decide on a job that does pay well but doesn’t help you feel fulfilled.

Getting residual income put in place will give you the ability to work because you choose to do so rather than because you “have to”. More than that it will give you the freedom to travel if desired, or volunteer, essentially giving of your time to create value where you see fit.

5. Less stress

We all have heard that one of the biggest problems many faces with their health is stress. Residual income is by far the best way to remove the financial stress in your life.

6. Reach goals easier

One of the things that hold everyone back is not having enough leftover money to work on their goals. How often do you hear about starting investing, saving for a rainy day, or any number of other financial goals and you say “tomorrow”. You say that because you don’t have the extra money to work on them.

Having a specific income would allow you to pay most expenses for certain and then start budgeting the rest for those other goals.

7. Work from anywhere

While most jobs we work require us to live within a certain distance in order to physically go to a location, many things you do for residual income do not require that. You can work anywhere in the country and look at real estate deals, write blog posts, or any other number of residual income ideas. This alone could also help you to reach some goals faster by lowering your mortgage or rent amount simply by moving.

Summary

Residual income is good because it allows you to continually receive income on a semi-passive basis for potentially years to come. Regardless of what you do on a daily basis, after you’ve done the work needed to create a residual income stream it will keep coming in. This creates financial certainty, true stability, and peace of mind.

Many methods of residual(also called passive) income are possible. Some take more money or more time to generate while some take a bit of both (like real estate). The difference between residual income is that you don’t need to work at it the standard 40 hours a week like you would with a job, also referred to as active income.

Once put in place there is typically only maintenance time required or nothing at all in the case of annuities with direct deposit. Those that do require maintenance though can often have much of it hired out if desired. Having a real estate management company for example takes care of the day-to-day tasks with rentals.

After creating one stream of income it becomes much easier to build a second. As you gain more and more income streams from passive or residual income this is how you build true generational wealth.

Contact us today to build your own residual (or passive income) income today.