Yesterday I posted an article yesterday to this blog comparing residual income to earned income. I’d have to say that it’s a pretty informative, very easy to understand article and I think you’d really enjoy it. A video discussing these two types of incomes was also included. Anyway, go check it out and be sure to leave a comment; I’d love to know what you think.

Residual income is so important to financial security in today’s world that I’d like to use this week’s edition of the Tuesday Tip to discuss it with you a bit more.

To put residual income in its proper context let’s first highlight a few points about earned income. The vast majority of people rely upon earned income as their sole source of money. Earned income is given to a worker in the form of a paycheck. Two major problems with this type of income are: 1 – earning it puts the worker on a never ending treadmill, and 2 – it can be taken away in an instant.

1 – a person wakes up in the morning, goes to work for 8 hours a day, goes back home, eats dinner, goes to sleep just to wake up and start the cycle all over again. They essentially live to work which results in a treadmill with no end in sight.

2 – I think we’ve seen all the evidence we need to see that a job can be taken away literally overnight. With millions of people having lost their jobs over the past few years you can see for yourself that there is no such thing anymore as job security. Even teachers and police officers are being laid off – nobody is safe today. What this tells you is earned income is very insecure.

On the other hand, residual income is a stream of income received for some type of work completed once. An example of this might be a recording artist who produces a CD. Once completed, every time a copy of that CD is sold the artist receives a residual income payment on the sale.

Obviously there aren’t too many of us with the talent required to produce a CD; especially one that others would actually want to buy. So, the question then begs, how can the average person create themselves a residual income?

The answer lies in having a network marketing home based business. The foundation of the network marketing business model is based on residual income. When you have a network marketing business you’re building an organization. Once built, the efforts of those within your organization will provide you with that all important stream of residual income.

Your level of income will be determined by you and once built, your minimal involvement is required to keep the income stream going.

Is it easy to build a network marketing business? No it is not and don’t ever let anybody tell you otherwise. But I can absolutely guarantee that once you have developed your network marketing business and your residual income stream, the effort required will always be very well worth it.

I’ve created a free report you can use to help you develop a residual income of your own. Go ahead and download it now…