subject: How Long Will It Take You To Reach Financial Independence? [print this page] Passive residual income is "beach money"Passive residual income is "beach money". This phrase was coined by a friend of mine to describe multiple sources of passive residual income which leads to financial independence.
Basically it means getting paid over and over and over again for work you do one time. It allows you to go on vacation, sleep late, take a week off and just do nothing; and yes, it allows you go to the beach and get paid whether you go to work or not.
The face of an analog clock provides a great lesson in building passive residual income.
Look at the face of a clock and let's assume that each minute represents 15 months of your life. The full 60 minutes would be a life of 75 years. At about 16 minutes you begin your career. If you work till retirement age, around 65 years old, 52 minutes have past.
Generally the most productive years of our life occurs between 16 minutes and 50 minutes, give or take some seconds. We get a job. We work hard for a raise. We may get promoted. Possibly our company must downsize so we have to find a new a different job.
Then it all starts again: the raise, promotion, a possible relocation, and another possible lay off due an economic downturn. All this time we are hoping against hope to retire with something to show for it all. We do this for 36 minutes of our 60 minute life.
Creating multiple sources of passive residual income allows you to in 3 minutes + 20 seconds what you couldn't accomplish in all 36 minutes of hard work! When you have a job, your money stops when you stop working.
When you have multiple sources of passive residual income you work ONLY if and when you want to and money continues to flow into your bank account no matter what.
3 minutes + 20 seconds = 4 years! Here's the beauty of this - a consistent 4 year commitment to creating multiple streams of passive residual income will give you financial freedom for the rest of your life.
After working to create this kind of income for 3 minutes + 20 seconds, you can enjoy the next 10, 15, or 30 minutes of your life (or more!) doing what you want to do, where you want to do it, and with whomsoever you please.
Clearly learning to create multiple sources of passive residual income is the only pathway which will lead to a life-time of serious income growth and financial independence.
by: David Lazear
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