There are several different ways to earn income. You can make money as an employee, trading hours for dollars and earning a wage or a salary. You can be self-employed and work for a service fee, on a per-project basis, or for an hourly fee. You can generate income through investments such as real estate, businesses, or paper assets like stocks and bonds. Or you could make money by selling a product or service.
With the exception of investments, the types of income listed above are limited by two things: the number of hours in the day and the amount you can realistically charge for a specific product or service. The most freeing type of income is residual income.
Residual income arises when you earn money regardless of whether you’re working or not. For example, if you’re a best-selling author, you only need to write the book once. Then Amazon (or another bookseller) distributes the book, and you get paid for every book sold. You do the work once, and get paid over and over again.
For many, this type of income feels like a pipe dream. It feels about as likely as winning the lottery or penning the next Harry Potter series. It feels accessible only to the “elite,” well-connected, or extremely talented.
But that’s simply not the case. Residual income is available to you no matter your background or expertise. The resources are out there to learn how to do it. You just have to be willing to put some elbow grease in.
Wherever you are in your career journey, start researching residual income. I recommend starting with a network marketing business. Network marketing is a business model in which a company manufactures a product and then pays the consumer to spread the word. The investment is low and so is the risk. Plus, you get access to training and support as long as you do your due diligence to find a great company and team. For more information, check out this free report I wrote that teaches the top ways to earn residual income and how to choose which one is the best place for you to start.
True freedom comes from having control over your most valuable asset: your time. Residual income creates true freedom because once you have it in place — ideally covering your living expenses — you are free to do whatever you want with your time.
So remember, you don’t have to trade hours for dollars for the rest of your life. Residual income is a real thing. Do your research, find what works for you, and then get on the path to freedom ASAP.
Kate Northrup is a member of the DailyWorth Connect program. Read more about the program here.