As you get older, it is important to have a financial plan for the future, your future. This includes investment, residual income, and multiple income streams. In this blog we will discuss how investment, residual income, and multiple income streams can help make the future a little less scary with more financial security.
There are two very different ways of looking at retirement. One way is looking forward, planning for retirement in your 20s and 30s. Another way is looking back, planning for retirement when you are older. If you are looking forward, then you need to focus on saving enough money in your 20s and 30s to provide for your retirement in your 50s and 60s.
Residual income is about creating multiple streams of revenue that generate money even if you’re not actively working on it. Residual income is income that you continue to receive after the completion of an income-producing work. Examples could be royalties, rental/real estate income, interest and dividend income. Residual income can be defined as either the income received after substantially all of the work has been completed, or as the income left over after paying all personal debts and obligations.
- Residual income is not the result of a job or hourly wages—it requires an initial investment either of money or time with the primary objective of earning on-going revenue.
- Residual income is regularly referred to as “passive income” for individuals or businesses.
- Examples of residual income include real estate investments, stocks, bonds, forex investment, and royalties.
- Investing is a way to diversify your investment and get higher returns.
Multiple Income Streams
Multiple incomes streams are important because they allow for a more diverse and stable investment portfolio which ultimately increases the probability that your investment will be successful. Here is an example of why investment portfolios should include multiple investment streams.
Multiple Income Streams:
– Investing in a 401k plan is an investment that has a lower risk of the investment not being successful and allows for tax credits.
– An Individual Retirement Account (IRA) can be used to fund retirement expenses, provide growth opportunities, or reduce taxable income.
– Investing in stocks can provide investment opportunities that some may not be able to get with a 401k.
– Dividend-paying stock investment is an investment strategy for the long term and pays out monthly or quarterly dividends.
– A rental property purchase provides someone with stable income, tax deductions, and building equity over time.
– Working as an Uber driver or Lyft Driver is a way to earn income while you work on building investment opportunities.
– affiliate marketing can be a very lucrative way of generating income. With affiliate marketing you earn a commission for referring a customer to buy a product or a service.
Planning for the future can seem daunting, but it doesn’t have to be. There are a number of investment opportunities that you should consider as well as multiple income streams. These investment options will help make your financial future more secure and offer stability in an ever-changing economy.
With this website I hope to motivate you to explore alternative ways of generating income, and to educate you on different strategies. The first investment you must do is in yourself, though. Learning the skills to let money work for you is simply key. Only then can you earn money in your sleep and grow your wealth around the clock.
Taking chances. Of course, you need to be able and brave enough to take a chance sometimes. You cannot win the lottery without buying the lottery ticket. And you will have to invest time and some money, to get started on the path to financial freedom. But everyone can do it! And so can you.