Passive Income or Residual Income

The best way to achieve long term security is to accumulate assets and build a continuous flow of income. Even better, is to create multiple streams of income.

Just as investors today don’t put all of their money in a single investment and hope for the best, neither do they rely on single source of income to accumulate wealth and long term security. The key is finding the right opportunities that fit your risk tolerance, personality, lifestyle, and skillset.

If you already have considerable assets, it may be as simple as doing your homework, getting professional advice, and diversifying your assets and portfolios. If you don’t already have considerable assets to diversify, you must begin by identifying the best opportunities to create multiple streams of passive residual income and start building each stream to reach your goals.

If you haven’t yet thought about you goals, now is a good time to start. How much income are you going to need to replace your current job or maybe your job and your spouses job? How are you going to pay for college for your children? How much will it take to gain more free time, vacations, and prepare for retirement? How much in assets will you need to produce that kind of income? Are you on track already?

The great thing about passive income is that it takes very little effort or expense to get started and if you devote a little time toward making it a success, the results continue to snowball until you reach the point that you are ready to quit your job or maybe just start another new source of residual income to compliment the first. Over time, this is what will replace your day job, pay your bills, provide for your children and help you live a comfortable life.