subject: 1linear Income Vs. Residual Income Knows The Difference Will Change Your Life [print this page] If you do not know the differences between linear income and residual income, then you definitely need to spend five minutes and read the remainder of this article. Knowing the difference will change the way you think, in return, changing the decisions you make and ultimately change your life from this day forward.
These income concepts are what divide the rich and the poor, the wealthy and the struggling middle class, the knowledgeable and the ignorant. Linear income and residual income are the two ways that people make money in the world. This article will show you which income concept is best, or let s just say, preferable.
First off, let s address what is understood to be linear income. Employees, independent contractors, and self employed business owners make up the linear income bracket. Linear income earners are only paid for the specific time expended, or paid directly proportional to the number of hours invested in their job. Linear income earners must be physically present or clocked in to get their paycheck.
Now here s the biggie Linear income earners cannot leverage their time and efforts. Leveraging is what creates the wealthy rich social class, and the absence of leveraging is what creates the middle to impoverished social classes. I will discuss leveraging in depth when we talk about residual income earners.
Linear income earners can be fired or down sized at any time. For example, an employee could be the perfect worker within their company. But now a bigger and better company has bought out acquire and merge the smaller company, and the bigger company now downsizes several workers of the original company. What s sad in this situation is you were the perfect employee, but because you were working for the wrong company at the wrong time, you are now out of a great job with great benefits. You have no control whatsoever of the situation.
In addition, in the linear income bracket, the height of your success is determined by your boss, not you. You have very little control of your achievement within the company that employs you. You must work and hustle in an effort to be recognized as valuable to the company, but only for your superior to get the credit for your work and hustle while you remain in your current position. That sucks does not it
If you are self employed, you do have control of your personal achievement, which is great, right Now tell me this, what happens to your business if you are in a car accident and or hospitalized, and it takes you three months to reach full recovery Because youre self employed, you will more than likely miss that money.
Let me ask this question. As a linear income earner, can you pass your job down to your children or grandchildren I do not know too many jobs that allow you to do that. And even in the corporate world, in order to be promoted your superior either has to be promoted or demoted.
In summary, linear income earners have little control of their success, they live paycheck to paycheck, they can be fired at any time, they cannot pass their job down as an inheritance, and they are participants of the dog eat dog world which thrives on the destruction of co workers and superiors reputation in order to receive promotion.
Now, the alternate income bracket is the residual income earmer. I will let you decide which the better of the two is.
Residual income earners consist of business owners, network marketing associates, and investors. Their income continues to be generated after the initial effort of building the business has been expended. Residual income earners do not worry about clocking in, they can be absent for periods of time and still see consistent income from their business. As a residual earner, you could be in the shower, in the hospital, or in the Bahamas, and you will still see checks in the mail or direct deposit transactions on your bank statement. Does not that sound like fun
Remember when I mentioned the word leveraging earlier Leveraging is basically using someone else s time and money to benefit you. Now wait just a second. I know that sounds very harsh and cruel but think about it first. Is not your boss leveraging your efforts When I put it that way, you start to get the picture of how this concept separates the wealthy from the not so wealthy.
A residual earner s income stems from their business or businesses. They are the boss they have total control of their business s success and achievement. Would not you like to be in that position if you are not already With your own business, you can pass it to your children, and they can pass the business to their children in return, you are leaving a family legacy. You are able to leave your children with a ready made pipeline of income versus working your job, retiring, and leaving your kids with nothing but debt.
With a residual income business such as a network marketing multi level marketing business, you benefit only by helping others to be successful. I personally do not know of too many instances where corporate employees are helping others they work with to become successful.
The two major separations between linear income earners and residual income earner s is the linear minded people work, scrap, and hustle for money. Most are only after a quick paycheck. Residual-minded people work, scrap, and hustle for freedom. By freedom I mean, freedom with their time, freedom with their lives, and freedom with their finances.
So which would you rather be Would you rather be the linear individual living from paycheck to paycheck, no control over your success, unable to spend quality time with your children, and always sick because you have dreams and goals but are unable to achieve them Or would you rather be the residual individual who possesses full control of their life, spends quality time with their kids regularly, is able to leave an inheritance for the future, does not have to sit on their goals and dreams, and can show others how to do the same.
I will leave it up to you.
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