How to Build Residual Income

If you want to learn how to build residual income then you will need to study this topic closely. Most people don’t really know about the concept of residual income since it was never taught to them. The much small percentage of people who do know what it is have no idea how to build it. You can even test this if you want. Go ask 10 random people to name 3 ways of building residual income without using a savings account. I actually did this myself and found that half of them didn’t really know what residual income was. Four of them knew what it was but couldn’t give me even one way aside using a savings account to do it. One person did know how to build it but at the same time didn’t have any and was trying to recruit me into his network marketing company.

Learning how to make residual income is critical if you ever want to have a chance of being financially free. Many people believe that they need to become a millionaire in order to be financially independent but that’s not the case at all. All you need to do is build enough passive income to offset all of your expenses and you’re pretty much set. This can be as little as $3,000 a month in passive income. The amount you need will depend on your lifestyle. So how do you build residual income? Let’s take a look at two ways.

Real Estate

This doesn’t mean buying a how and hoping that it will appreciate. What this method involves is such things as buying rental property and renting it out to tenants. You will then be having them pay for your mortgage and anything over that will be residual. This method takes a lot of knowledge though and unless you know what you are doing, you may end up fixing toilets at 3 in the morning. Another method is buying commercial real estate. Look at your local shopping complex. Someone owns that piece of land and all of the store owners on that property pay the land owner a monthly lease. Since it’s to the store owners’ benefit that they keep the stores clean, you won’t have to worry too much about maintenance. The problem with this method is that you need a lot of money to buy a piece of real estate.

Online Business

This method of building passive income involves creating and owning property on the web by way of websites. You can use this method to sell products of your own, sell other people’s products, or have advertisers pay you for putting their ads on your site. In all of these cases, the key is to drive traffic to your website. The more traffic you drive, the more money you will make. The upside to this method is that it cost very little money to get started. The downside is that it can often take years to build a decent amount of residual income if you are starting from scratch and have no idea what you are doing.

Learning how to build residual income can be a lengthy and time consuming process. The best thing to do is to find someone is already making residual income and can teach you. If you only had one goal to focus on, make your goal to build residual income because doing so can truly set you financially free.