Tag: linear or residual income business

Residual Income

Here, together, seek to clarify the concept of residual income, which have much influence on people who seek to fulfill those dreams that can not be achieved with a linear income. Those who have been employed, dependent in some way or another, we know that the day we are not going to work, we will discount it, and that our work we pay a salary, once for a period which can be fortnightly or monthly . If he intends to pay us back, we must work again the same period, the same amount of hours or days in the previous. A professional same thing happens: the day does not go to your office or clinic, do not serve its clients and / or patients, and then not receive payment of consulting fees or for the day. A merchant, the day that do not open your business, not sell, therefore, not charged, so that day will not moneymakers. These are some simple examples of linear income: work and get paid for that work once.

If we do not work: no bill, do not sell, no charge. Residual income, however, are those from certain activities that are performed only once and get paid over and over again, for life. It happens with authors and composers, while his works are famous (such best sellers), not any work. They are also the interests of a significant amount of money deposited in a bank, though they may be meager, yet they are outweighed by the value they assign to their custody and security. Residual income is income from inheritance of great wealth, exploitation of real estate for rent (houses, buildings, land), the sale automatic annual renewal of insurance policies, among the best known. In summary, residual income, money income are those that we can get done once for a particular work or work which may take a certain amount of time as their property, and charge him for life with the possibility of inheriting our descendants. Elaborate on this theme in subsequent entries.