Would you rather have a linear income or a residual income? If you don’t know the difference read
on. This could transform your life and
it’s why many entrepreneurs pursue their business dreams. Let me know what you think and leave a
comment below.
Linear Income vs. Residual Income: Knowing the
Difference Will Change Your Life!
By: Dimitri Turner
If you don't 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 doesn't it!
If you're 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're in a
car accident and/or hospitalized, and it takes you three months to reach full
recovery? Because you're self-employed, you'll 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 don't 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'll 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 don't 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'll still see checks in the mail or direct deposit transactions on your
bank statement. Doesn't 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.
Isn't 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.
Wouldn't you like to be in that position if you aren't 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 don't 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, doesn't
have to sit on their goals and dreams, and can show others how to do the same?
I'll leave it up to you!
Now I would not explain those two concepts without providing a means to
crossover from the linear mindset to a residual mindset.
http://www.payitforward4profits.com/dlturner3183
Check out the website above. This company will provide you with free
information and they will simply introduce you to the most prominent and
successful businesses that you can build out of your home and/or online.
Aligning with this program will make the transition from linear income to
residual income a smooth one.
If you want something you never had, you have to do something you've never
done, period!
Author Bio
Dimitri Turner is an Internet Marketing Guru out of Memphis, TN. He writes
in-depth and passionate articles about the network marketing industry as well
as inspirational and motivational articles that encourages his readers to
maximize their potential and maximize the present moment.
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