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 earner. 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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