What is Residual Income and why is it important to you?
Basically residual income is income that you earn when you are not working as opposed to active income. Active income is earnings based on you being actively involved in a profession or 9 to 5 job. When you quit the profession or 9 to 5 job, your income also quits.
Some people think that with residual income is something that will produce money 24X7 and you do not have to put much effort into the business. All you have to do is watch your bank account continue to increase everyday. You will see many advertisements online that try to lure you into the next best thing. A single search on Bing,”How to make a million dollars online” has 31, 400,000 results.
But the residual income that I am talking about is that you have or create a business, put your time and effort into the business (just like diving), and you earn residual income. How many times do you think Isaac went to bed dreaming about that next great dive? We have to do the same thing for our business.
The next time that you are working on your business, think of how you can earn money, after you have closed the doors and go home. Do you sell tires (residual income) after you go home? You do, if someone is talking about your business and the great deal and great customer service they received while they purchased the tires today.