Is Residual Income What You Really Want?by Chris KostopoulosResidual Income is the term my friend used today,while we were hanging out in NYC enjoying thebeautiful spring weather, when asking me how myonline business was going. His exact words were“How much Residual Income have you created sofar?” The problem with the question was that Irealized he, as well as, many others probably get theterm Residual Income confused with PassiveIncome quite often. And we’ll get to how much my“Passive Income” is today and how I created it, butlet’s get some basic terminology right first.Residual Income Definition by Investopedia states – The amount of income that anindividual has after all personal debts, including the mortgage, have been paid. This calculationis usually made on a monthly basis, after the monthly bills and debts are paid. Also, when amortgage has been paid off in its entirety, the income that individual had been putting toward themortgage becomes residual income.Passive Income Definition by Investopedia states – Earnings an individual derives from arental property, limited partnership or other enterprise in which he or she is not activelyinvolved. As with non-passive income, passive income is usually taxable; however it is oftentreated differently by the Internal Revenue Service (IRS).Residual Income vs. Passive Income Video Explanation
YouTube Not Working? Watch It Here: Residual Income vs Passive Income VideoWatch It On YouTube If You Prefer: Residual Income vs Passive Income VideoIf Not Residual Income Then What?My response to my friend was “I don’t really think you mean residual income, but rather passiveincome” and obviously like most people he was confused, because many people use these termsinter-changeably, but as we noted above they have different technical meanings which Iexplained to him. So we got into the discussion of what exactly defines the difference and whywe are more concerned with Passive Income.What Is Passive Income ExactlyThink of passive income as money you earn for little to nowork. Being that most people grow up working a JOB andthat’s all they know, the concept of earning money fordoing little to no work doesn’t make much sense. Keep inmind as I noted in the video its not No Work EVER andmake money, that is absurd and doesn’t exist, unlesssomeone just gives it to you, which good luck in waitingfor that lol.Think about someone that has $1,000,000 in cash andinvests it at 4% per year (a very good rate for today) theywould make $40,000 per year and how much work did theydo? not much and they won’t need to do any work at all toearn that $40k per year. But to be noted is they probably worked pretty hard to get that$1,000,000 in the first place right? So some work upfront is almost always needed.Another example is when I purchase a piece of real estate as an investment property. Up front Ineed to do some research, negotiations, get financing and invest some of my money all upfront.Once that piece is mine, however, and it’s rented (for a profit that is) then every month Ipassively earn income from that property with little to no work needed. Some people then bringup well you need to make sure it’s rented and you handle any issues, etc. and to them I say “Hirea Real Estate Management company, pay them a few bucks and save yourself the headaches”.Worth your investment.
How To Get Passive Income?I’ve tried, tested, failed and succeeded at quite a few different typesof businesses over the years. Both traditional and non-traditional,network marketing, sales, etc. and what I’ve learned is that you haveto make sure your business is where it can be the most profitableand most versatile and where the most people are. Where is that?The Internet!I think in today’s day and age your best option is to leverage theinternet and build an online business, that you can manage fromanywhere in the world. Not to mention it’s the first place everyonegoes to when they need to learn or find out anything, right? Googlehas become our best friend and teacher.You want an online automated business that you can invest in upfront and then reap the rewardsfor many many years to come and get paid month after month and the best part is that you canincrease your month over month income. This is the exact same system I use and train my teammembers and personal 1-0n-1 coaching clients that pay me $300/hour for coaching to learn howI do what it is I do. This one income stream (keep in mind I have multiple income streams thatpay me monthly), but this one income stream alone earns me as much as that Millionaire earnson interest and over time it just keeps increasing whether I do any work or not. I guess in a senseyou can consider that a Millionaire in the making and I’m making new millionaires every day byproviding my team the training, support and step by step path to get there.Now you might be saying to yourself “Hey Chris, what about your other income streams? Howdo I get those?”. My answer is start with one, the best one and the one I suggest you start with.Get focused and learn for me, then when you’re ready to expand your business into multipleincome streams I’ll let you know you’re ready.So whether you want the misunderstood Residual Income or the Real Passive Income wediscussed then click the link and let’s get your on your way to a successful passive incomestream.If you enjoyed this post please comment below andshare on FaceBook & G+1 if you want more content like this.
Chris KostopoulosEmail: Chris@ChrisKsite.comIf Your Team or Mentor Does NOT Have a Simple Step-By-Step Proven Strategy For Success, Check This Out (UnlessYou Already Have TOO Many Leads) Click Here ForInstant AccessP.S. -> $1k+ Per Day Cash Loophole Exposed (Click Here To Get The SecretLoophole)You Might Also LikeHow To Start A BlogAvon ReviewBanners Broker
How To Create Wealth: What The Wealthy DoThe Power of Operating LeverageRelated posts:1. How To Stop Calling Leads And Make More Money2. How To Create Wealth: Traditional Business vs Passive Income Business3. Online Jobs From Home4. How To Make Money Blogging5. How To Create Wealth: What The Wealthy Do