Rich people do not depend on only one source of income, but grow orchards of money trees.
The famous Nile is the longest river on planet earth; if you look down from a spacecraft orbiting the earth, you will be able see it and its two main tributaries quite clearly—it is that voluminous! But what you can’t see from outer space is all of the thousands of little streams and rivers that run into the Nile: it is all that water from thousands of small streams that pour into the Nile, making it so large and invincible.
If you examine the rich you will find that their income is like the river Nile. They have several streams of income pouring in from different sources to create a huge cash flow of residual wealth.
“Prosperous people have always known…If one stream dries up, they have many more to tap into for support. So-called ordinary people are much more vulnerable. If they lose one of their streams, it wipes them out…In the future, you will need a portfolio of income streams – not one or two, but many streams from completely different and diversified sources – so that if one stream empties, you’ll barely notice. You’ll be stable. You will have time to adjust. You will be .”
Why is Residual Income Important?
Residual income is important because every dollar you earn from this source is not dependent on your time or effort. Residual income gradually frees up your time to enhance creativity and improve quality of your life. It gives you financial security and strengthens your relationship with your family members as you rid yourself of time and financial constraints in your life.
Residual income frees up your time and also gives you tax breaks to give you even more dollars to create residual income. When you understand the residual game and implement it methodically, your income will spiral upwards along with freeing up your time.
You can never become rich on earned income because you are trading time for money. To become truly rich, you have to separate your time from the money you earn. Creating wealth does not have to be about extracting every last ounce of your energy. If you take a conscious decision, you can gradually shift from linear income to generating residual income that will remain with you for generations to come.
The primary benefit to multiple streams of income is the consistency and security of your income coming from non-related sources.
Benefits of Generating Residual Income
- Freedom to choose when and where you wish to work
- Residual income is generated 24 hours 7 days a week
- Freedom to create an unlimited amount of income
- Have time to spend with your family and friends or go on a vacation
- Retire young
- Financial security for your family in case of illness or ill health
- Ability to give to charitable causes dear to your heart