subject: The Pathway To Financial Freedom [print this page] One of the most popular search engine topics on the Internet today is "financial freedom" or "financial independence".
It is generally agreed among financial consultants and financial planners that the only way to gain true financial freedom is to create multiple sources of passive, residual income.
This is income that you earn by doing work one time but it keeps on paying you over and over again, for the rest of your life, WITHOUT you having to do any more of the work that originally produced it.
Let's do a quick comparison of the difference between traditional income creation and passive residual income.
* Traditional Way Of Creating More Income #1: Get a Second Job Or A Better Job
In this scenario your employer decides your pay and when, if, and how much it will increase. You have limited income potential; namely, you get paid once for the work you do. If you stop working the income stops as well.
* The Passive Residual Income Way
You are your own boss and you decide your when and how much your pay will increase. You have unlimited potential for making money precisely because you get paid over and over for work you perform one time. If you stop working or take some time off you still get paid.
* Traditional Way Of Creating More Income #2: Go Back To College Or Get More Training
In this strategy to increase your income you are guaranteed a diploma when you graduate (generally in 2-4 years) assuming you attend the required classes and do the required work. However, you'll pay up to $200,000 in tuition costs and you'll basically make no money while you're in school.
* The Passive Residual Income Way
Your guarantee is that you'll make money while you learn, receiving on-the-job "real life" training. You'll pay less than $1000 to get started. This is your initial investment which you'll earn back quickly. You'll "graduate" in one to four years with residual income already flowing.
* Traditional Way Of Creating More Income #3: Open A Franchise Or Some Other "Brick And Mortar" Business
In this income generation scenario you'll have to invest between $50,000 to $200,000+ upfront. You'll have to buy capital equipment and hire and manage employees.
Your income potential is limited, generally $75,000 per year AFTER the third year. You'll have hefty franchise fees to pay along with long-term leases for real estate and equipment.
It will likely take you 3-5 years to break even. Basically the business owns you!
* The Passive Residual Income Way
Here there are no employees to mange or pay. There is no initial capital investment (other than your nominal start up fees which are usually less than $1000).
You have unlimited income generation potential - up to $1,000,000 in the first three years. You have no franchise fees. You work from home, so there are no additional real estate fees.
You make back your initial investment and start getting paid immediately. You have total time freedom so you can work when (and if!) you want.
While this is not an exhaustive comparison, it does provide a "bold relief" picture of why getting involved in passive residual income venture is the key and ONLY pathway to financial freedom or financial independence.
by: David Lazear
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