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Frequent
Questions & Answers
What is
"Residual Income"?
- Residual Income is money that continues
to be paid to you on a previous instance of effort or
investment. Example: you invest $100 at 10% interest
and each year you earn $10. Or maybe you set up a
billboard on the side of a highway and rent it to
advertisers for $500 per month - each year you earn $6000
(12 x $500) for the initial effort of installing the
billboard.
My Dream is
to stay at home and spend more time with my family -- Do I have
to travel like you guys to develop Residual Income?
- No, the beauty of a Residual Income
opportunity is the it can be developed anywhere with an
investment of just a few hours per week. We build our
business to have the freedom to make our time and our lives
belong to us.
Why can't I
just save or invest my money to have the same Freedom that comes
with Residual Income?
- Saving and Investing is definitely
important and it is a way to develop a residual income
stream. However, building a residual income business
is usually a faster way to get your Freedom. If, for
example, your income is $5000 per month and you are able to
save or invest 10% ($500 per month) of that income.
Assuming your a happy with the lifestyle your income
provides, you will need to accumulate $600,000 of invested
money to maintain your current lifestyle (not counting
inflation or increased cost-of-living). If you were
able to get a 10% (compounded annually) return on your
investment you would need to invest almost 25 years without
touching the investment to be able to pay yourself $5000 per
month. In my business, many people are earning MORE
than $5000 Residual Income per month in LESS than 2 years.
Are there
other ways to develop Residual Income?
- Yes, but there may not always be as much
Freedom. You could develop residual income by buying
houses and becoming a landlord, but that would require a
substantial investment and you would have to keep them
maintained & rented (too much worry and work for me).
You could write a book or develop software that pays you
royalties, but only a small percentage of the population
have the talent to do these things. My Residual Income
System works well because anyone can do it, it doesn't take
a lot of time, and there is very little maintenance involved
(like in real estate).
I like my job
-- can I build a Residual Income Business and keep my current
job (or business)?
- Of course! Multiple income streams
is a good thing and its great to stay in your present
profession as long you desire. However, keep these
things in mind. First, remember that things change.
Your company ownership could change hands, your current
supervisor might be replaced by one you don't like as well,
or your company might even go bankrupt. These things happen
to unsuspecting employees all the time. Second, don't forget
to evaluate how your time is spent. If all your time
is at the office with little time left for family or fun, is
that really the life you want? (just a thought).
Finally, be real with yourself about your job's loyalty to
YOU and about how much you really earn. Would your
company keep you if they got the chance to replace you with
someone better? or someone less expensive? How much do
you really make per hour counting work time, commute time,
and expenses related to your job? These are just some
questions to help you honestly evaluate what you do and why
you do it.
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Residual
Income vs. JOB
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Hours for Income
- With a traditional job you work for someone else --
trading your hours for their dollars. With a Residual
Income Business you continue to get paid multiple times for
work you performed once.
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Loss of Income -
In almost all cases, if you become disabled or were unable
to work your job, your employer would not continue to pay
you. This is true even with most business owners (i.e.
if you own a plumbing business and injure yourself so that
you can't service customers, your income would decrease.)
Once you develop a residual income, you continue to get paid
for effort done previously.
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True Freedom -
With a job or even a traditional business your time is not
your own. Your boss or your customers decide when and how
your time will be spent (And how frequent and how long your
vacations will be). With Residual Income you have the
Freedom to work when you want, play when you want, travel
when you want, even sleep & wake up when you want.
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Family Time -
Most people who work a job see their spouse and children
just a few hours each night. Consider this -- your child
spends about 7 or 8 hours a day at school - that amounts to
35 or 40 hours per week. If you see your kids 2 or 3
hours in the evening (for some folks it is much less) and 20
or 25 hours on the weekend, your kids spend as much or more
time at school than they do with you. Where are your
children learning their values and ideas about life.
Is it any wonder most parents "don't know or understand
their kids by the time they reach puberty. Our goal is
to spend as much time as possible together as a family and
to teach our children our values and beliefs. A
Residual Income Business allows us to do just that (and in
variety of pretty cool places).
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Security - My
parents taught me that JOB security was the best kind of
security. But is that true? With company
layoffs, downsizing, and restructuring how much security is
really in a "good job?" For my money, Residual Income
is much more secure!
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Retirement - On a
traditional job, you work 45 or 50 years and retire with a
gold watch and maybe a little pension and/or social
security. Residual Income is something that doesn't
decrease just because you turn 65 (or 70 or 80 etc.)
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Inheritance - In
most cases if you retire with a pension or social security,
little or nothing is left for your survivors once you pass
away. Residual Income continues to pay even after you die
and can be willed to your spouse or family members.
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