Hi everyone, I am going to teach you the top 5 key strategies to build the life you always dreamed of through passive and/or residual income. So let’s make money moves.
You may be familiar with a few individuals who are making money, while they sleep. And the question, we often we may ask ourselves is what do they know, that we don’t!
Well my darlings, it is called Passive and Residual Income.
And, if you want to be in charge of your life, your time, while optimizing your income to work anywhere in the world, you want to tune in for today’s episode.
First, I will explain what we tend to be most familiar with which is a service or product income, and jump into Passive and Residual income
Service Income - When we provide a service, we sell our time for revenue generated income, usually at a fix or hour cost, a service provider could be as a coach, consultant, or a tax accountant.
Product Income - is when you have an actual product, a tangible object that you can sell to someone for revenue generated income.
Passive Income - is money you earn in a way that requires little to no daily effort to maintain. For instance, passive income ideas could be renting out property, equipment or building a YouTube channel - These may take some work to get up and running but they would eventually earn you money while you sleep.
Residual income is working on something once and keeps generating income, residually over time. If you are a musician or actor, you would receive residual income.
We have mostly been taught the service of product income generated, but why not passive or residual? In order to build wealth, we must be able to build either a Passive and/or Residual income stream, that generates more income than your expenses to be able to make it profitable.
Building a passive income:
Increases your wealth-building portfolio
Creates an opportunity to retire early
Protects you from a complete loss of income if you lose your job
Provides an additional source of income when you’re no longer able to work or if you outlive your retirement fund
Let me give you an example, I am a financial relationship coach, I can coach one person for one hour, and charge them a fee, this is a service. Therefore I will be receiving service income for my time in cash value.
Now, let’s say I am feeling unwell, and I have to take a few days off from seeing clients, this could be a financial burden if this was the only income I was counting on.
Now, let’s say that in addition to my financial relationship coaching, I wrote a book. Now, if my book was available for publishing and ready to be sold, I would be making residual income. Because I would write the book once, but the income is residual, meaning the gift that keeps on giving.
This is one of the money mindset we all need to shift into.
What is your skill or idea that you can apply today in creating Passive or Residual income?
"Tony Robbins said: “You’re already a financial trader”, you might not think of it in just this way, but if you work for a living, you’re trading your time for money. Frankly, it’s just about the worst trade you can make. Why? You can always get more money, but you can’t get more time. "
Unfortunately, on the internet, you will find a lot of advertisement to stay at home in your PJ’s and earn $500 a day doing XYZ.
Do not fall for that, they are most likely scams.
If we believed everything on the internet, we would be in big doo-doo, and I would like to point, out that NOTHING comes for FREE, and there is no such thing as FREE money. So please always do your homework and research to stay financially safe.
Although working from home in your PJ’s is much more common these days since we all have been quarantined. So this is the perfect time to get your money mindset hat on, and take action!
Passive or Residual income takes some elbow grease to create, plan, strategize. Most of the time, we always see the end result of a project, and we miss understanding and seeing the blood, sweat, and tears that come in between.
We all have heard the saying "Work smarter not harder”!
Well, it is because it is about strategizing your next move and planning your end goal. What type of life do you want to live in?
At the end of the day, I know I would rather work smarter now, put a plan together to build my future receiving both passive and residual income streams.
In other words, I am trading my time now and hours now, for the future benefit and dividend income, aligning myself with the life I desire to live.
Remember, all action steps we take now, today will benefit us later, in 3 months, 6 months, and some years…
Whatever and however time it takes, it is worth trading now for a better future.
Otherwise, if you look at it from a lifetime of trading your hours/time for money, well you will be working a lot harder than you would need to. So plan accordingly.
Let’s jump into the 5 main key strategies of passive and residual income.
IP is when you carry a knowledgable skill inside your mind, that you can turn around and sell for a monetary gain, in other words, you can sell it.
For example, you could create be a book, online course, video, and ebook. - sell other digital products
The best part of intellectual property is that we worked on it once, and get paid when someone buys it.
AM has been popular these days, especially on Amazon or Instagram. Many influencers use this model of income to build their channel and advertise products.
For instance, one of my close friends is an influencer, and she receives so many products from large sports agencies. She posts the merchandise on her Instagram page, and voila, each time her followers order the product, she receives a commission.
A really simple way to make income, however, her platform was created with a lot of discipline and effort.
Please keep in mind, when you are doing affiliate marketing, only advertise that you really believe in. Let’s empower each other to stick with integrity, and have tried the product and can honestly recommend the product to our community.
NM distribution model is when the consumers spread the word, and they get some type of reward, usually in a reduced fee or discount from the client referral.
Take a gym membership, for instance, I belong to a gym, and if my friend ends up signing up, whom I referred, I would be eligible for a month free or reduced monthly rate.
In other words, the consumer is connecting the company with the potential client - In return a network marketing income would be applied.
Ok, Full Disclosure so I don’t lose my license, because I am not your Financial Advisor, please speak reach out to your financial advisor before making any investment strategies.
Ok, Investing, We have heard the phrase, you need money to make money! Well, in this case, it is true.
You can invest in things, such as real estate, stocks or bonds, startups, and businesses to name a few.
Also, diversification strategies are important to keep in mind when investing in your portfolio, and the rule of thumb, is you want to invest in the least amount of risk for the greater reward.
My basic rule for investing is to put your money into what you value.
Traditional business = where you are selling a Service of Product
You have an awesome product you want to sell, you get to earn your income, based on your object.
Building a business entails we create a system that works whether you are there or not, and some of these take YEARS, to build.
But if you are looking to get out of the day-to-day showing up to work for a paycheck, and won't start your own business, go for it! Start your business plan!
The goal is to create enough passive/residual income, greater than you're expenses so you can build a good financial wellness life.
It is possible to conquer our dreams, all we have to do is start today, and take action!
Russell Brand mentioned that discipline is self-love… This really resonated with me, because discipline, is when you are focused and rooted in your vision, then you are unstoppable.
So, how does discipline show up for you?
The real joy in life comes from finding your true purpose and aligning it with what you do every single day.
What do you focus on most often?
What’s your life obsession?
Finding love? Learning?
Pleasing everyone? Making a difference?
Changing the world? Avoiding pain?
We have all heard the saying, what you seek is seeking you.
So, what do we focus on most?
Whatever it is, it will shape, mold, and direct your life.
Tony Robbins, said and I quote: “Always remember the ultimate truth:
life is not about money, it's about emotion.
The real goal is to have the lifestyle you want, not the things.
When you die, someone else gets those things anyway.
They’re not yours. I have no illusions: as much as I cherish and enjoy “my” resort in Fiji, I know I’m a caretaker.
Someday someone else will own this property”.
“Attaining possessions is not the goal, Money itself is not the goal.
Our worth is not measured by the weight of our bank accounts, but rather by the weight of our souls.
The path to money, the places money can take us, the time and freedom and opportunity money can bring, these are what we’re really after"
Our future depends on the investment we make today, in developing the leaders of tomorrow.
Remember to always Ignite the CEO in you!
Until next time, Ciao!