Establishing Residual Income

There comes a time in every person’s life that, frankly, most people either look forward to or dread. It is the day when we are forced to admit that what used to be easy for us to accomplish is no longer so. For many, this doesn’t mean retiring or quitting their profession. It simply means that, at the very least, a change of trajectory is necessary to maintain their interest and productivity level.

Many people choose an easier way. The image of restful afternoons in the garden, the allure of travel unrestrained by vocation, the desire to pick up that hobby you left behind all those years ago… all of these things, though old as the working world, still retain their attractive aura for some.

However, both of these decisions require a level of financial flexibility to accomplish establishing residual income. Such flexibility is hardly accessible through traditional employment any longer and far too many people are discovering that the light at the end of their vocational tunnel is merely a debt collector with a flashlight. The best insurance against such a rude awakening is a steady stream of residual income. The author’s two favorite methods? Investment and intellectual property.

Investment

Residual income is often the product of a short term loss in the hopes of a long term gain. For example investment requires a financial commitment that may pay well in the long term, but for most people they will definitely feel the loss of the invested cash in the short term. However, in ten years when their investment pays off, they receive a monetary gain… without ever lifting their finger again. Granted, it’s not that simple. There are bound to be ups and downs, and there’s no real guarantee out there that you’ll hit the jackpot. But jackpot or no, history demonstrates that, if you are smart about your investments, you will gain more than you lose. By the time a working person is through with the daily grind, through wise investments, they may find themselves making as much or more than when they worked all day, though they are now traveling the world at their leisure.

Intellectual Property

Let’s be honest here. Not many of us haven’t, at some point, thought about writing that next big blockbuster screenplay or best-selling novel. Few actually try because it takes time and confidence… both of which are often lacking. People like to say that “time is money.” I disagree. Time is priceless. If I loose a dollar bill, I can make it back. If I lose a million dollars, with hard work and skill, I can recover it and more. But I can never regain the precious seconds I wasted playing a computer game rather than doing something more productive. That moment of downtime is the creative window for intellectual property. If, instead of playing Halo, I write a chapter for a book, practice my woodcarving, compose a tune, invent a better mouse trap, or engage in some other sort of creative process, then I have made the most of an invaluable asset… my time. And, just as importantly, I seized the moment doing something that I enjoyed. The fruits of my enjoyment are now capable of becoming major money makers for me. Why not send out a few letters to a publisher about that novel? What, really, have you got to lose? The answer is nothing. But there is a huge potential for gain.

With retirement funds shrinking, inflation booming, and health decreasing it is fast becoming a necessity to possess some sort of residual income. These are my favorite options to acquire it, but with research and an open mind you will be surprised at how many options are out there. A steady stream of residual income often requires risk to attain. But to let an opportunity pass you by may be an even bigger gamble.

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