There are huge differences between residual income and linear income. Rich people understand the differences between these two types of income and utilize this knowledge to their advantage. There are interesting things rich people know about residual income that has helped them to build their wealth and if you desire to become wealthy, this information will be beneficial to you. Here are seven things rich people know about residual income and linear income:
1]: They Know What Residual Income Is- Rich people know that residual income is the type of that you continue to even after doing the work needed to generate the income in the first place, it is when you continue to get paid even after a work is done. Whereas linear income is the type of income you receive based on how much work you do. Rich people focus on building residual income instead of depending only linear income.
2]: Residual Income Grows Exponentially- Very much unlike linear income that grows linearly, residual income has the capacity to grow exponentially. It utilizes the double effect of time and compound interest to stir exponential growth.
3]: Residual Income Can Grow Indefinitely- Rich people understand that residual income has the capacity to grow indefinitely and that is why they focus on it. Linear income will stop when you stop working, but residual income will still continue even after you stop working.
4]: Residual Income Makes You A Master Of Wealth Creation- You look at some people and see them put in what seem like little efforts and they still have enough financial compensation more than some people that seem to be working harder. This is because they utilize the power of residual income that makes the create wealth with ease whereas linear income make people to victim of income chasing.
5]: Residual Income Gives Financial Independence- Rich people understand that residual income makes you financially independent and that is why they are advocates of residual income. Linear income at its best can make you dependent on a job but residual income makes you free from job dependency and enough money to secure your financial future.
6]: Residual Income Gives You Luxury Of Time- One of the beautiful things about wealth is to have it and still have enough time to spend with your family and do what you love and the rich know that only residual income can help you do this. Linear income does not give you the luxury of time to enjoy your income or the company of your loved ones because you have to give your time in exchange of money.
7]: Investment Is A Very Good Residual Income Source- Rich minded people understand that investment is a very fantastic residual income source. Even when rich minded people have linear income, they budget part of it in investment platforms that guarantees regular returns and this serves as their own source of residual income that will help them attain financial freedom.