Lies and Myths about Residual Income

Do you dream about making money while you sleep?

It is the dream of every millionaire wannabe - to get rich quickly and with minimal effort. We want to win the lottery or get a big inheritance. Barring that, how about some residual income? We can go to sleep while money keeps flowing and flowing into our bank accounts.

Residual income can certainly help you become a millionaire, but there are many myths that will keep you stuck wanting to be a millionaire without actually becoming one.

Many people think Residual Income means you can earn money while you sleep.
Many people think Residual Income means you can earn money while you sleep. | Source

Residual Income Myth #1

Income is Passive and Takes No Effort

Earning money while you sleep means you don't have to do any work to get it, right? You sleep while the money keeps rolling into your bank account. That's why it is called passive income, because you can be passive.

One of the aspects of human nature is that we tend to minimize work other people do while we exaggerate our own efforts. We see other people with their wealth, and think that it must have come without much effort at all. The media and the public, even the wealthy, make it seem so easy, that it becomes hard to remember that there is effort, initially and ongoing to acquire and maintain wealth.

The truth is that residual income does take work. There is the initial research of choosing the right residual income source. Then there is the set-up. Let's say you are choosing a rental property. You either have to make or find the money to buy the rental property. Then you have to find the right rental property, negotiate the contract, and attend the closing. Even then, you have to keep up the ongoing work of collecting the rent and fixing up the property. You have to pay the loan and the real estate taxes, and meet the building code requirements. It really isn't as easy as making money in your sleep.

Here's another example. You can buy a business and hire a manager to run it for you. Of course, building a business may have been cheaper, but it may be easier to buy an already established business. Once you hire the manager, you will still need to monitor him to make sure he doesn't run off with the money or start his own business and take off with your customers.

Residual Income Myth #2

You Have to Buy the Right Book, Attend the Right Seminar, or Take the Right Class, or Join the Right Program

You've seen the offers - come to this hotel and we will give you a seminar about how you can get rich quick and easy. We will even give you a free gift just for attending.

I fell for one of these offers. As a poor person, and before the internet, I had no idea about how to get out of poverty and join the wealthy. I figured I would be willing to give up a few of my hard earned dollars to become one of them.

I attended one of these seminars, and it turned out to be a sales pitch to attend a class, and buy some books. And let me tell you, they make it very hard to return the stuff and get your money back. Very hard.

If these people were so rich doing what they were trying to tell us to do, then why are they wasting their time telling us how to do it? Why sell books and seminars?

If anyone asks you to give them money so you can make money, run. Run fast. Sure, they may have some tips, but you can find the information for free online. If it really was as easy as they say, they wouldn't want to share the information with their competitors, which is what you would be if you followed their plan.

Become a member of Hubpages.and start earning your own residual income. You will have to write a lot of hubs, take the time to learn how to write hubs, market them, and give it time for people to find them. It is free to join.

Residual Income Myth #3

It Takes Money to Make Money

This is sometimes true. You can't earn interest on money unless you have it to invest, and you can't buy rental property until you at least have a down payment and good credit rating. But there are many ways to get residual income that do not involve an up-front cash payment.

Giving money to a person or company in hopes that they will show you the way to income while you sleep will not help. That money will be put in their pockets, and you will come out poorer than you were before.

Amazon Resources on Residual Income

Residual Income Myth #4

Build It and They will Come

There are people who understand that residual income takes a lot of hard work at the beginning. They set up a business or write the great novel, and then go to sleep waiting for the money to come pouring in. All of this takes a lot of work. But the money doesn't come rolling in.

Once the business is up and running, or the great novel is written and published, there is additional effort that must be made in the form of marketing. You have to get the people with the money to know about your endeavor, and you must make them want to try your product. And you have to keep them coming again and again to keep the business viable in the long run.

Source

Why Residual Income Myths Prevail

The reason residual income myths prevail is that they do have some truth in them. There are people who have made lots of money, and have residual income sources. There are programs you can join that will help give you a step up to get there faster. There is information about how to get residual income that can be useful.

Before starting on the path of residual income, you have to make sure that you have the right information and have a reliable source. You will have to understand and be willing to do everything that you will be required to get your endeavor going, and be willing to take the steps to keep it running. Then you will have to take all of those steps. By then, you will be really tired, and hopefully by then, will be able to earn money while you sleep.

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Comments about Residual Income Myths 33 comments

Millionaire Tips profile image

Millionaire Tips 4 years ago from USA Author

Thank you Helena, your motto is so true. Unfortunately, I got the flyer about the seminar when I was in my early twenties - and was too "smart" to ask my parents at the time, so I had to learn the hard way.


Helena Ricketts profile image

Helena Ricketts 4 years ago from Indiana

The only people that get rich off of the seminars are the people giving them. I've never been to one because I too figured that if it worked as well as they say it did, why are they selling the information?

I have a personal motto: The way to get rich off of the internet is to sell information to people that want to get rich off of the internet. :)


Millionaire Tips profile image

Millionaire Tips 4 years ago from USA Author

Thanks carol7777, tobusiness, MzChaos, and nanderson500. It would be nice if there was a get rich scheme that actually worked, but as many of us have learned, there is a lot of work involved in not working!


nanderson500 profile image

nanderson500 4 years ago from Seattle, WA

Great, great hub. Great advice. Voted up and awesome.


MzChaos profile image

MzChaos 4 years ago from Indianapolis

No Kidding! Nicely written, and you didn't call any of us foolish for doing all those things. :)


tobusiness profile image

tobusiness 4 years ago from Bedfordshire, U.K

Excellent advise, there is no short cuts, those who put the effort into their business reaps the benefits. Voting up.


carol7777 profile image

carol7777 4 years ago from Arizona

Well done and so true. Thanks for sharing really good information. We are led down the wrong path when it comes to money. Voted UP. and shared.


Millionaire Tips profile image

Millionaire Tips 4 years ago from USA Author

Thank you Terrye, there are many people who want to get the money quick and listen to the hype that tells them that they can do it without the effort. Unfortunately, if it was true, we would all be millionaires by now and nobody would be working. I am sorry you had to experience this lesson the hard way, especially since it wasn't you that was duped by the shysters.


TToombs08 profile image

TToombs08 4 years ago from Somewhere between Heaven and Hell without a road map.

I could have used this many moons ago with my first husband. He used to (and talking to his current wife, STILL DOES) chase after every get rich quick trap out there. His latest is that study at home to become a medical transcriptionist. He never believed me when I told hi it wouldn't work and blamed me when it didn't. :) Many a valuable lesson in this hub, some I had to learn the hard way through the ex. Thank you for this.


Millionaire Tips profile image

Millionaire Tips 4 years ago from USA Author

Thank you Cyndi10 - I wish there was such a thing as passive income, that would have money coming in without any effort from me. I need a money tree or an endowment from my grandparents, although I am sure those would take work as well. There are things that we can do now like HubPages as you mentioned that will hopefully help us down the line. No sleeping allowed here!


Cyndi10 profile image

Cyndi10 4 years ago from Georgia

Hello Shasta, This is some timeless information. Residual income, passive income, somehow people do equate those with little to no work. What I see with anything is there is work involved. Sometimes a lot of the work is on the front end and the work eases later, but there is still work. Like writing for Hubpages, for instance, a lot of work to get to the point where that residual income pays off and still there is work! ( They just added those zzz's :-) Anyway, it's early morning and I tend to ramble then. Great article. Voted up.


Millionaire Tips profile image

Millionaire Tips 4 years ago from USA Author

That's true Robert Conner, you have to go through the Blood, Sweat and Tears, and then hope that there is some residual income at the end to follow. Thank you for your visit and comment.


Millionaire Tips profile image

Millionaire Tips 4 years ago from USA Author

Thanks Amy!


Amy 4 years ago

Good post!


untraditional income 4 years ago

http://www.untraditionalincome.com/

I enjoyed the tips you are providing on your website. Residual income can make life easier by providing long term income for doing something one time. Thanks for the information..........


Millionaire Tips profile image

Millionaire Tips 4 years ago from USA Author

Marcy, Paul, TheHug5 and Mother Nurture, Thank you for your comments. It is nice to dream about making money while you sleep, but as you have learned, it usually isn't as easy as that. You have to work hard to set up a residual income stream, and you have to be very careful about joining anyone's "program."


Mother Nurture profile image

Mother Nurture 4 years ago from HubPages America - Southern California

So true. This should be taught in school...Scam101. Everything in life that is worth anything takes hard work, commitment and persistence. Nicely put.


THEHuG5 profile image

THEHuG5 4 years ago

I'm glad you mentioned the seminar thing because I too went to one of those things before college thinking I would get some good advice about getting financial aid to pay for school but all they wanted was to sell me an expensive and unnecessary service. People should be aware of scams like this. This is another great hub from you!


PaulGoodman67 profile image

PaulGoodman67 4 years ago from Florida USA

I agree with all your points, which are stated very well. In addition to no. 4, I would say that you have to produce something that people want to read. A bad novel, for instance, will do badly no matter how well it is marketed. Some people expect to make money with articles about their pet getting sick, or other personal material, which is unlikely to be sought by a wide aduience.

In a very real sense, marketing begins before you've even written a word, in that you need to find out if there is a market for what you're producing.


Marcy Goodfleisch profile image

Marcy Goodfleisch 4 years ago from Planet Earth

I'm glad you pointed out the many reasons you have to sustain your work to keep an income stream from drying up. Very good hub, with valuable information. Voted up and useful.


kikalina profile image

kikalina 4 years ago from Europe

Some great points. Excellent hub. Thanks for SHARING


mljdgulley354 profile image

mljdgulley354 4 years ago

Very good information Millionaire Tips. I too have been sucked in with the residual income get rich schemes. No matter how well they work most of them have to be worked at or the residual part will go away.


Jeannieinabottle profile image

Jeannieinabottle 4 years ago from Baltimore, MD

All of this information is so true! People need to know it is just not as easy as they think it will be. I went into online writing believing at some point the money would be rolling in with little or no effort. Wrong! Great hub and voted up!


Millionaire Tips profile image

Millionaire Tips 4 years ago from USA Author

Thank you Bryan - it is good to know that this hub is ranking well on Google.


Bryan Westra 4 years ago

I really like what you have to say regarding Residual Income. I was just talking on the phone to a business partner of mine who was reading aloud on the phone a blog post that someone had written about Residual Income Being A Myth. I googled "Residual Income Myth" and you popped right up. Anyways, I run a blog also. If you want to leave me some comments back and let me know what you think please check it out: http://www.indirectknowledge.com


Millionaire Tips profile image

Millionaire Tips 5 years ago from USA Author

Thank you Carol3san for your visit, vote, compliment and comment.


carol3san profile image

carol3san 5 years ago from Hollywood Florida

Thanks so much for this excellent hub. Very informative. Voted up and useful.


Millionaire Tips profile image

Millionaire Tips 5 years ago from USA Author

Thank you Seeker 7 for the comment and vote. Sorry you got taken like so many of us do, but hopefully someone can learn from our experiences of the get-rich-quick schemes.


Seeker7 profile image

Seeker7 5 years ago from Fife, Scotland

I think the majority of us have fallen for the 'seminar' crap. Like KoffeKlatch I was young and very naieve and was bitten badly! But you learn from your mistakes.

This hub was an excellent - and HONEST approach to residual income. Voted up!!


Millionaire Tips profile image

Millionaire Tips 5 years ago from USA Author

What can I say KoffeeKlatch Gals, I was young and stupid. Those meetings have the BEST salespeople in the world. I think I did eventually get my money back.


KoffeeKlatch Gals profile image

KoffeeKlatch Gals 5 years ago from Sunny Florida

Oh so true. I've been to the meetings, checked out a book or two and merrily went on my way down the hard work path. Great hub.


Millionaire Tips profile image

Millionaire Tips 5 years ago from USA Author

Thanks starme77.


starme77 profile image

starme77 5 years ago

simply put and so true :) nice hub thumbs up

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