- Personal Finance
Residual Income - 3 Ideas for Long Term Profits
We all strive to have the perfect passive income. If, something was to happen, and we cannot work or cannot find work it can be used as a safety net for extra income. Along with the possibility of retirement savings being gone quickly having that extra source can significantly benefit those who strive for it.
There are some excellent ideas to creating the perfect residual income here are three of the top ones that I have been able to locate that people have been doing all over the country.
1. Invest small amounts of money over a long period of time.
Over time, our investments can grow if we let them. Yes, sounds boring and takes a lot of time, but the returns are enormous.
Just imagine if you were to go back to when you were first born, and your parents put away just one dollar a day for your entire life how much money you could have in just one savings account.
a. From age 1-20 - $38,000
b. From age 20-30 - $161,000
c. From age 30-40 - $662,000
d. From age 40-45 – 1,300,000
e. From age 45-50 – 2,500,000
f. From age 50-55 – 5,000,000
Pretty impressive savings huh? That is with just a 3% growth rate, sometimes it is more sometimes less, but it can grow exponentially.
Just think it is never too late to start, if you do this and you are only 35 and start today you will have an extra 300,000 by the time you turn 65 that is still a lot of money no matter how you look at it. The more you put away the better. If, you can increase that to 3 dollars a day then you may have close to $1,000,000 by the time you are 65.
2. Use other people's money to leverage wealth.
One of the limitations we have on our selves is that sometimes we do not have the money to make those investments and in return no significant payouts. That is where the process of using other people money to invest gets better.
One of the most popular people to write about this concept is gale Halbert. He was a copywriter in life and used a specific technique to use other people’s money to invest. When he gained a new client he would always charge a 5% upfront fee and 5% of the overall gross revenue of the amount from the client’s portfolio for performing the work they required. This was on top of the 15000 regular fees he charged just for talking to him. But he took this 10% extra money and used it as an investment vehicle which virtually made him a million air.
3. Create strategic alliances.
Networking is one of the best ways to find top notch investments that can help you make a residual income. There are people in this world who have a list of other people they know that talk about things from the newest investment vehicles, hottest products on the internet, or newest sales leads. They are able to then be the first to the market place and get the most profit.
So, how to you network?
On line social media cannot millions of people around the world with a common interest. Many towns and colleges have organizations that meet monthly to discuss the latest innovations.
If, you think you are not able to join a certain club or organization. If, you have not even asked how to you know. Many of these clubs you just need to ASK!
There are many more ways to build a residua income stream and I will write more on those ways but, get the basics down before you are left out in the cold without your lion’s share of the real profit.