The Two Types of Extra Income

There are two kinds of extra income you can earn from home– Linear and Residual.

Linear income is the extra income you earn on an hourly, daily, weekly or monthly basis. There is no more future commitment attached to it from either end. You are paid once for a product or service you provided.

Residual income is an extra income where you work hard once and reap the fruits of it for many years in the future. It is the reward for the same effort, but paid over and over again. One of the great advantages of residual income is that once things are set in motion, you continue making money from your initial efforts, while gaining time to devote to other things... such as generating more streams of residual income!

Some examples of residual income are writing a book and getting paid a royalty percentage for each book that sells, or purchasing real estate and getting extra income from rent payments.

In normal course of a career, most individuals earn a linear income through a job or a profession. You are earning only for the time you can spare on work on a daily basis. Some earn a higher linear income than others.

There is nothing wrong with earning some good, honest, "one-shot" linear income, but given a choice, which would you rather do: work hard and get paid only once, through linear income, or get paid continuously - perhaps for years or even the rest of your life - for hard work you perform only once, through residual income?

Most financially enlightened people try to shift to residual incomes from their linear incomes to have a secure retirement and future.

Financially successful people such as Robert Kiyosaki (Rich Dad) and Donald Trump understand the importance of this and recommend network marketing as a good way for the ordinary person to build a residual income. Starting one residual extra income effort a year would be a good way to build multiple streams of residual income.

The Internet gives a lot of options for network marketing and other extra income streams. You do have to be careful in selecting the right one from the mass of marketers by recognizing the hype from the straight talking ones.

Many of these programs have residual income components in them. Select one and give it everything you can, when you are earning solid residual income from it, start off with the next one.


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