When you first start to think about increasing your income you may think it’s a one on one interaction. You go to work and give your time and experience and in return they give you money. Easy Peasy.
However you can’t work three different jobs everyday for 8 hours because then you have no time to sleep, eat, or have a social life. That is why I am going to show you the other types of income that will help increase your earning potential exponentially.
Active Income
Like I stated earlier, active income is like you going to work. You trade your time for money. Many people think this is the only way to earn money. But it’s the worst way to earn money as you physically, or mentally, have to be somewhere in order to get the check.
You cannot exponentially increase your income with a lot of active income jobs. That is why some people wear themselves out while trying to actively earn more and more. And they eventually hit a ceiling that they cannot overcome.
Passive Income
Passive income is income that you earn without having to ACTIVELY do something. A common example of this is when people invest money. When you put your money in the stock market for example and it goes up. You earned money without actually having to do something.
This is a very popular method because if you are earning money without having to always be there you can still work your job and then earn passively on the side with whatever it may be. This helps you retire earlier if that is your goal.
Residual Income
This means different things to different people, but for me residual income is when you have to work one time and you get paid for it indefinitely. An example I like to use is this blog, or a YouTube page. You have to produce a video on YouTube, and I have to write blogs. Both of those things take time to produce. But when my blog is uploaded or a video is uploaded on YouTube that is the “end” of your work for that piece. So if that piece is earning money you will continue earning money without having to do anything else.
This is popular as it gives you something to do to make sure you are staying on track. However you can get stuck in this vortex of always having to put something out in order to gain money. The money you will earn will sometimes be better than active income. But if your goal is to sit on a beach everyday and listen to the waves, you might not want to put all your eggs in this basket.
What is Your Lifestyle
I give you these 3 options to inform you so that you can decide what type of income you want to explore. They all will earn you money, that is about all they have in common. Take a deep dive and see what your ideal lifestyle is. That will help you know which path to take.
If you want to continue putting out content in order to gain more and more money, then residual income is for you. But if you value your time a little more, and want to set and forget. Go after the passive income strategy.
Rob’s Opinion
I like my time, but I also understand that you can earn a lot of money over a long period with residual income. But you know my motto, I like playing by the sides of the fence. They say you need to have a diverse portfolio and that goes for these types of income.
Continue working your day job and earning that active income for as long as you can. It will only add to the pot when your passive and residual income streams start to come into fruition.
After all that is said I will leave you with this. You can always earn more money, but you cannot earn any extra time.
