Friday, September 26, 2008

Residual Income From Alternative Investment Opportunities

Residual income is a powerful way to create wealth for one reason and that reason is time leverage. For many the idea of residual income means being able to go on holidays or just do nothing all day and still get paid, but in actual fact as nice as that is, that is not what residual income is created for.

Look at it this way, if you have to work 10 hours to make $100 then you are physically there present and engaged for 10 hours to make your $100 dollars. But what if you worked 10 hours to create a system in some form of alternative investment that gave you a residual income of just $5 dollar per day. The difference is from now on and into the foreseeable future, you will make $5 dollars a day from the 10 hours of work you did.

The purpose of residual income is to free your time so you can make more residual income. It would be impossible to create wealth if you have to work ten hours to make $100 if tomorrow you have to start from scratch all over again. The work you did the day before has been paid to you and you will never see money from that work again.

By creating residual income streams from a systematized investment medium you can conceivably create 1000 of these $5 dollar a day income streams which would deliver you $5000 dollars per day. This type of residual income is very powerful because not only does it add up to quite a healthy chunk of daily money, but because they are all just small streams, if you should lose one or two or even ten they can easily and quickly be replaced for a very stable income source.

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