The rich get richer while the poor get poorer; pretty unfair but it is the truth! The rich get richer simply because they focus on earning money completely different than the average individual. They have learned to use the power of leverage through residual income.
Nobody was born rich so the possibility of you becoming very wealthy is very good! You need to learn how to make money; or maybe more importantly how your money can make more money. Find a way that you only do the work once but the money still keeps coming in from all of your hard work.
So when you are thinking about how to become wealthy refer back to these two basic ways to earn money:
1) Active Income:
- This directly correlates with the effort you put into work. If you work one hour; then you will only get paid for that one hour. If you call in sick then you don't get paid. This can be seen in the form of wages, salaries, and self-employed service providers like doctors and lawyers.
- Through hard work and dedication you can earn a significant amount of money throughout your lifetime. However, those people who earn a 6 figure income each year probably have put in several hours to get to this spot. But in the end it is still limited to how much time you want to commit to show up to work to earn your money.
2) Residual Income
- This is when you continue to get paid after the work is done. You can obtain residual income through writing books, movies, or songs and also investing into real estate or business where you don't physically have to be present. Great entrepreneur have figured out why residual income is so important to them and these people include: Warren Buffett, Bill Gates, Richard Branson, and Oprah.
If you haven't figured it out already the rich become richer through residual income. Why residual income? They have learned how to leverage and invest their money correctly. They have figured out that in order to be a 6 figure plus income earner they must think outside of the box. And in order to achieve their goals they needed money working for them, which is exactly what residual income is.
Let me get a myth straightened out for you. Once you have established your residual income source it is not all fun and games from here on out. You must put in time and effort to get your newly found income of the ground. And once you do you will have to monitor how it is doing. So, just because you are sitting at the beach enjoying your Mai Tai, does not mean that you will have to answer your phone or respond to an e-mail.
If you want to be among the elite entrepreneurs you will discover why residual income is so important. You will learn a new source of revenue and figure out that this is a lot easier and a lot more fun than active income!