Two Major Streams of Financial Income

Written by admin on September 15th, 2011

Most of us begin earning money by being employed by another entity. This certainly teaches us how difficult it is to earn and keep our hard earned income. In order to earn this income, we are paid for the value of our input. When we are not at that place of employment, then we can not expect any income flow. We are paid only once for our effort. Thiis form of income is defined as linear. Linear income stops when we don’t show up for work.

There are many examples of linear income in our society. For instance, doctors and dentists only earn income when they are actively seeing and treating patients. When they go on a vacation or to an educational meeting,their income stream comes to a halt.Also their income is fixed by the number of patients that they can see and treat in a day. Most people in the service industries are in the linear income stream and are limited by how much they can deliver and always by the demand of their physical presence.


Certainly, linear income streams are very reliable, but they are also limited by time and talent. As we progress through life, we a have a great desire to have more free time but want to maintain our previous lifestyle or even improve on it. This requires another source of income. You can always find another part job, but that  will defeat the goal of creating more free time. Why not look for developing a totally new source of income that will not require you to be available all of the time? This source of income is called residual; income. The definition of residual income is an income stream that is a recurring stream that continues to flow whether you are there or not.

There are many examples of residual income including dividends, interest, royalities, income from pensions. and internet marketers who make residual income from monthly commissions. The sooner that you can develop a residual stream of income, the sooner that you will be able to create more free time. The secret of the wealthy is not do they only have more money, they also have more free time to enjoy their money.

To learn about a source of residual income go to

Word derivation of the day: Why do we use the term “once in a blue moon”? Originally the phrase “blue moon” was meant never to occur. However, moons of blue color have been seen after volcanic eruptions and occasionally through smoke laden fogs. For this reason this phrase now means rarely ever.





Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply