Residual Income through Real Estate

Residual Income is income that keeps coming in month after month, year after year, from work you do just once. An example of this is income received from stocks or government bonds.

It keeps coming and you don't have to work for the government. Another example is a royalty paid over the rights of an invention or a song.You keep receiving income for that song and you don't have to keep singing every time to collect.

The best way to build your financial freedom is by securing residual income from many sources. Now,to clarify, not all residual income is passive income. In fact, most residual income has some “residuality.” Don’t try looking that word up in the dictionary – it is my own creation.

The residuality of an income source refers to the extent that you have to put effort into establishing a cash flow. Some forms of residual income are labor intensive in the beginning, some in the middle and some at the end.

Do not believe in completely passive residual income – you should always have control and take charge of all of your income sources. Regardless of the residuality of the income you choose, the benefits of residual income are excellent:
o Control your own income
o Creating security
o Being able to set your own priorities
o Great tax advantages