Thursday, October 16, 2014

That Extra Income

Most rich people have always known that they, at various times, need that extra income and they make sure it's taken care of. If one income stream dries up, one can always fall back upon the others, and if all go well you can only get richer. There's no harm in that. Sadly, ordinary and average living people have always been in a dilemma regarding this. Loss of one income really affects them adversely and it would take years of hard work before any normalcy returns, not to mention the rippling effect of financial distress that could cause a lot of heartache and unwanted emotional disturbances.

Having diverse sources of income or extra income gives you a backup to fall back upon. If one source vanishes, you should not feel the difference. One should have enough time to reorganize and regroup. That’s it, and you are back on the happiness highway, safe and sound. The importance of extra income and extra sources of income is not lost on anyone today, therefore the want and rush.

Extra Income can be of two kinds; Linear and Residual.

Linear income is the extra income you earn on an hourly, daily, weekly or monthly basis. There is no more future commitment attached to it from your end or from your employer’s end.

Residual income is an extra income where you work hard once and reap the fruit of your labour for many years to come. The reward for the same effort paid over and over again!

In the normal course of a career, any individual earns a linear income through a job or a profession. You are earning only for the time you can spare at work on a daily basis. Some earn a higher linear income. A smart person tries to shift to residual income from his/her linear income through extra income routes to have a secure retirement and future. Starting with one residual extra income effort a year would be a good idea.

Internet gives a lot of options in the extra income route. However, one has to be careful in selecting the right one from them by recognizing the hype from the straight talking ones. Scams also abound on the Internet. Be cautious!

Almost all good online programmes have residual income components in them... I will discuss the best of these in subsequent posts. Select one and give it everything you can. When you start earning residual income from it, then it will be time to start off with the next one.