How important is a residual income opportunity for you success?


If you were to survey people on the street today and ask them if they have a residual income opportunity as part of their income portfolio and possibly retirement planning I think you would get mixed results - some will some won't.







The vast number of people I talk with in my business and personal life are looking for financial and lifestyle freedom! So I ask myself, have they ever considered how they are going to achieve these goals - what plans have they put in place?



If you don't have a plan - a road map to chart your course for success, you are likely to end up somewhere else! Interesting thought………?

So, given that it is not uncommon to hear people express their desire for financial and lifestyle freedom you would assume that a residual income opportunity would be top of their priority list - right?

Well maybe it is not that clear for many people………is it clear for you?


Consider the following - do you:

  • Understand what a residual income opportunity is?
  • Understand why it is important to include a residual income opportunity as part of income and lifestyle planning?
  • Recognize a good income opportunity when you see one?
  • Know how to get started?


Let's explore the whole concept of a residual income opportunity a little more……

I want to start by asking you these questions:

  • Why do you think so many people are working so hard and just treading water - not going anywhere in particular, never getting ahead?
  • Why are so many people ending up at retirement and finding they don't have the financial and lifestyle security they dreamed about?
  • What can YOU do to take control of YOUR future instead of leaving it to chance?


The answer to these questions lies in understanding the difference between reciprocal income and residual income.


Robert Kiyosaki the international best selling author of Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money-That the Poor and the Middle Class Do Not! series of books gives us these insights.






"Reciprocal Income"

Is what we earn by trading one thing of fixed value for another thing of fixed value"




In other words…..

The income that you earn by being employed or through self employment in your own business results from trading your time for the income you are paid. 

Your income is limited by

the number of hours that you can physically work.



"Residual income"

Is what we get when we do something once, then receive payment for it over and over again, year after year"





Some examples of residual income opportunities are:

  • Regular income earned from repeat purchases of products or services from an existing customer base
  • Rental income from property
  • Royalties from publishing a book or from a patent
  • Earnings from internet advertisement on websites
  • Earnings from a business that does not require direct involvement from the owner or merchant
  • Dividend and interest income from bank investments and owning securities such as stocks and bonds - these are usually referred to as portfolio income which can be considered a form of residual income


Can you see the difference between reciprocal income and residual income………?

Reciprocal income ceases once you stop working

Residual income continues to be earned when you are not working



Invariably you will find that people who get ahead and those who are financially free in their retirement are the people who understand the power of residual income opportunities and have actively taken steps to build multiple residual income streams.




The graph below is a really helpful visual representation of how a residual income opportunity can impact YOUR life……..it demonstrates a model for achieving financial security and ultimately financial freedom.



Let me explain what this all means………… Maybe you are not a graph person, but stay with me…… it really does help in understanding why a residual income opportunity is well worth your serious consideration.

The goal quite simply is income diversification!

What is income diversification?   Big word, but it is really not that complex!


Income diversification is a process of developing multiple streams of income from a range of different income sources, several of which should be residual income opportunities.

Ultimately your goal should be for a number of those income streams to beresidual…… in other words continuing to be earned when you are not working!

A residual income opportunity (also commonly referred to as a passive income) that is going to help you achieve financial freedom could be one that is initially in addition to your income from wages or self employment but ultimately has the potential to exceed your reciprocal income stream.



If a residual income opportunity (which continues to be earned when you are not working) ultimately exceeds your reciprocal income (which ceases once you stop working) then you have FINANCIAL and LIFESTYLE FREEDOM!





Now that got your attention right?


This is all achieved by developing what Robert Kiyosaki calls a B Quadrant business and ultimately an investment portfolio.

A great residual income opportunity should be one that can be built to the point where the residual income exceeds any income earned from reciprocal income (e.g. wages or self employment).



Now, let's get back to the graph!


Interesting points to note:

  • Reciprocal income - there is a maximum limit on the income that can be earned from wages or self employment and this limit is set by the number of hours per week you can work. This scenario is represented on the graph by the Red Dotted Line--------
  • Residual Income opportunity - When income diversification occurs by introducing residual income opportunities into the equation, residual income can begin to build. Ultimately a residual income opportunity can generate income which exceeds the income limits that you experience in a job or self employment. This scenario is represented on the graph by the upward black arrow.
  • Employed or Self Employed - the blue bar on the graph represents income from employment or self employment - this is referred to in Robert Kiyosaki's books as having your income derived from the E or S Quadrant. (E = Employed and S = Self Employed)
  • Business Owner and Investor - the pink bar on the graph represents income from being a business owner and investor - this is referred to in Robert Kiyosaki's books as having your income derived from the I and the B Quadrants. (I = Investor and B = Business Owner)


Just so we are all clear what is meant by a "B" Quadrant Business Owner as defined by Robert Kiyosaki in his book Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money-That the Poor and the Middle Class Do Not! let's have a look at this before we go any further…




A business owner is someone who owns a business that continues to produce income whether or not the owner is actively working in that business or not.

In other words, it is a residual income opportunity!


Of course you now understand clearly

what a residual income business is……right?


If not, I am sure all will become clear as we move on………





  • Long term residual income - in the graph long term residual income is demonstrated by the diagonal lines. You can see that these continue to expand and therefore represent the potential for residual income growth to go way beyond the reciprocal income stream.


This is exactly what you want from your residual income opportunity - it means YOU get to kick back and relax and enjoy all those amazing things life has to offer you. If you are anything like me, you don't want to be working forever………life has way too much to offer to even consider that scenario!



For total financial and lifestyle freedom you need to have included at least one residual income opportunity into your income portfolio!


Introducing a residual income opportunity into your short and long term income plan provides you with HUGE flexibility and allows you to make choices - remember YOU want to be in control of YOUR life, not your life controlling you!!!!


So when YOUR GRAPH looks like the one above you have the freedom to choose!


You might decide to remove the E or S income source so you can free up your time for the things that really matter to YOU!


Some sound advice!


Including a residual income opportunity into your overall income plan can have short term as well as long term benefits for your lifestyle and financial independence!

Have you ever been faced with a scenario that impacts your present income in some way - for example:

  • You have to take time off work for some reason
  • Your self employment income is compromised in some way
  • You are faced with unexpected extra costs
  • Your financial commitments change


Consider this………How could a residual income opportunity provide you with some peace of mind, an insurance policy against the unexpected, a financial buffer to give you a degree of flexibility so you have choices?

Author and Accountant Fiona Clayton-Law in her book "Wealth Creation" puts it this way……






"A measure of your wealth is the number of days weeks or months that you can survive financially if the last income that you were to receive from your job or business was last night."




Oops!!!! Scary thought right!!!!

So what can you do to avoid being in this situation……You know the answer already!



Income Security


Including a residual income opportunity alongside your wages or self employment income provides security and enables you to invest earnings from your residual income source and thereby accelerate yourself towards achieving financial independence and lifestyle freedom.


Think of your residual income opportunity as your business partner………you are working in tandem ……… in other words ………you build this income stream while you keep working in your present job.


A residual income opportunity can provide the option for you to:

  • Continue to work in your present job, while alongside this
  • Increase your discretionary income, and in so doing
  • Broaden your choices on how you live your life and spend your income



Think about what a residual income opportunity could mean for the way you live and the choices you make!


Have you ever considered ways to increase your discretionary income so you can:

  • Buy a new home or car?
  • Have a holiday or overseas trip?
  • Pay for your child's education?
  • Support a charity?
  • Attend university?
  • Plan for retirement?

The list goes on………

If questions like this have ever crossed your mind, then you need to seriously consider what a residual income opportunity could mean for you!




One Final Question Remains!


What residual income opportunity is top of the list?

Well, as I said earlier, there are tons of examples of residual income opportunities - it's about:

  • choosing what's a fit for you
  • what pushes your buttons and gets you excited
  • what works with your present income streams
  • what works with your present line of work
  • what matches your experience and skill sets


Maybe you combine a number of different options……… but I can honestly say, earning residual income from home makes bucket loads of sense! And one of the best ways to do this is by tapping into the network marketing industry.


People all over the world every day are recognizing the potential of network marketing as a credible and significant residual income opportunity.


For many it has become a way to:

  • diversify income
  • plan for short and long term financial and lifestyle security


Of particular note!


It is not only those joining and participating in network marketing today as a residual income opportunity that recognize the huge potential!

The network marketing business model is also receiving very favorable endorsement from a number of business and industry experts who have written about not only where the industry sits today, but how the future of network marketing looks incredibly bright!



Interesting Validation


Just so you don't think I am making this up - take a couple of minutes to review these quotes I think you will be suitably impressed!

  • Dr Charles King - Professor of Marketing at the University of Illinois at Chicago and James Robinson - senior vice president and counselor to the president of the U.S Chamber of Commerce have this to say about the network marketing industry in their book The New Professionals - The rise of Network Marketing As the Next Major Profession":  by Charles W. King and James W Robinson 2000 edition)

    "Every year, thousands of men and women leave established, lucrative careers to pursue the new opportunities in this booming industry. It is now attracting former doctors, CEOs, and others seeking independence and financial rewards - people who have exceeded the income and prestige of their previous careers and are now living lives of choice and freedom."




The most successful people in the world look for and build networks, while everybody else just looks for work.  "A network marketing business offers all of us the opportunity to access a 'B' quadrant business at a more affordable price and with much less effort."





  • Edward Ludbrook - Author and world's leading Network Marketing strategist has this to say in his book "Shakeout! The Big Picture why Network Marketing is booming AGAIN"





Anyone involved or joining Network Marketing today can be certain that they truly are in the 'Right Place, at the Right Time.' All that remains for them is to learn the business and take massive action to exploit their good fortune: you never know if you are ever going to be in this situation again."






"The time spent in your network marketing business is rewarded over and over again. Income from a conventional business is earned once only.""Network marketing will teach you to identify opportunities when they arise, fostering an attitude of optimism and success."




I could go on……… as there is a ton of validation out there and some great reasons why you would want to consider using network marketing as the vehicle for participating in a residual income opportunity.

But at the end of the day it's a pretty convincing list of quotes don't you think……… and certainly some very good reasons to include a residual income opportunity based on the network marketing business model as a part of your residual income portfolio!

You know, YOUR financial and lifestyle security is not something that just happens - there are NO get rich quick schemes! Your present and your future are NOT based on good luck - it is all about planning, it is all up to YOU……and most importantly it is about enjoying the journey, a journey that can be all the more rewarding when you include network marketing as one of your residual income opportunities!

"A journey of a thousand miles begins with one step" Chinese Proverb

I can't wait for you to take your first step!

Stay with me as I show you how………


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