The reasons why you should develop a residual income – money that you receive over and over again for work you do only once – are many and varied. If you’ve wondered whether the time and effort needed to grow a residual income would be worth it, consider the following ten reasons to do so.
1. Get out of debt. An extra $500 to $2,000 a month will go a long way in helping you to eradicate a sizable debt quickly. And when you build a business in network marketing, or MLM, you can develop a residual income of that size in a matter of months.
2. Build your children’s college funds. For most couples, setting aside money each month for a college fund is uncomfortable. But if you have developed a residual income of even only a couple hundred dollars per month, building a college fund becomes one less stress on your family budget.
3. Pay cash for big-ticket items. When you take out loans for things such as cars, appliances and home movie theaters, you end up paying a few hundred to several thousand dollars more than the ticket price because of the interest. However, if you set aside the residual income that comes into your bank account, you can quickly save enough to pay in cash and avoid loans.
4. Build your emergency savings without sacrificing. For most people, creating that three to six months of emergency money is a major challenge. However, if you have an extra thousand dollars coming in every month, you can accrue what you need for your emergency fund in just a few months without taking on a second job or sacrificing lifestyle luxuries such as new clothes and going out to eat.
5. More to give to charities. If you’re like me, you want to be able to give to every good cause. Developing a residual income allows you to increase your generosity many times more possible than with the average employee job income.
6. Early retirement. Once you develop a residual income of several hundred dollars, it is likely to keep growing. And when it grows to over five figures, you can begin to save it in investment vehicles that will give you a nice return. In a matter of five to ten years, you could have enough saved to be able to retire from your conventional job and live off of the interest of the investment.
7. Financial independence. Maybe you love your job, but you don’t want to count on it for your financial security. In that case, develop a residual income and invest it as you would for early retirement. When you have enough saved up, you have the all the security you need, which allows you to continue in your chosen career with much less stress.
8. Quit a job you hate. On the other hand, you could decide simply to live off the residual income. After it has either matched or exceeded the income from your day job for several months in a row, you will probably be able to safely quit your job and be assured of a regular and growing monthly income for years to come.
9. Lifestyle freedom. Whether you want to be “green” and install solar panels in your house and buy an electric car, or want to take at least two overseas vacations per year at luxury resorts, building an MLM business can provide you with the extra income to be able to afford whatever lifestyle you desire.
10. Time freedom. Because you can develop a large regular income in a network marketing business that allows you to quit your day job, cut down hours or retire early, you suddenly have time to do all the things you’ve wanted to do.
Why should you develop a residual income? I think the better question is, why shouldn’t you?