Residual Income - Why It Is Necessary

Does your definition of abundance include provision for earning some sort of residual income?

Residual income is income earned as a result of past exertion and will continue indefinitely with very little or no further exertion on your part.

Some examples include rental income from investment properties, dividends on shares, interest on money invested in banks, royalties from past creative efforts, business franchises and so the list goes on.

Unfortunately many rely solely on income earned from their jobs with absolutely no thought about how they'd maintain their standard of living should their job suddenly finish. OK, maybe the skills you possess will allow you to find another job quickly, but what if your job suddenly ended because of health problems?

Sadly, this is exactly the situation one of my friends is now facing. A single mother with a 13 year old son and her immediate family living 2000kms away is lying in a hospital bed receiving plasma, kidney dialysis and blood transfusions. There is some hope that she will make a full recovery but the reality is that she may not.

Only a few short weeks ago she was a successful sales rep with a large international company and had been there for over 20 years. There was no reason for her to think that this could not continue for the forseeable future. Until her kidneys failed that is....

How would you and your family cope financially in a similar situation? Without a doubt, the emotional trauma is enormous and no amount of money will compensate for loss of health. However, life still goes on. In my girlfriends case she still has a son to bring up and she has to do that regardless of the prognosis for her long term health.

How much easier will it be for her with some residual income coming in compared to none? She could still provide for her son despite the fact she's not working. Depending on the amount of residual income her own future could be a bit brighter perhaps allowing some choices in treatment options or allowing her more independence than she would otherwise have.

There are many opportunities available for absolutely anyone to begin making money from sources other than their regular jobs. Many of them require very little start up capital while others require a substantial investment to begin.

What they all have in common is that they require hard work when starting out and require an absolute, unshakeable belief that you deserve and are capable of acquiring the riches you want.

Sadly, there is no such thing as a get rich quick scheme. Fortunately there are many, many ways to get rich slowly. In any case your level of wealth will never exceed your level of personal development.

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Sharon Reid is creating a self improvement website for those wanting to create abundance in their lives. She has a free membership called The Sandpit where those with little or no experience are empowered to create a residual income for themselves. Visit her website here.

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