Becoming Rich -- The Key.

The key to becoming rich is residual income. Residual income is income earned while you sleep. If you stay home sick you are still producing income. Songwriters get royalties from the songs they write. This is a form of residual income. Insurance policy writers receive residual income. It may be dividends from stock or bonds. Rental income from residential or commercial properties is another form of residual income. The more of these streams of residual income you have the more likely you are to become rich. Your job is one stream of income, if you get sick or hurt your one stream of income is gone. The rich have multiple streams of income. If one stream of residual income dries up, they have nothing to worry about because they have other streams that will still provide them with monthly cash flow that will pay the bills. The goal to keep in mind is to have multiple streams of income that are capable of paying your monthly bills. Once this is accomplished you have freed your time to do as you wish.

When you look for possible streams of income, keep in mind that you do not want to create another job for yourself. Doctors and lawyers may appear rich by their material possessions, but if they stop seeing patients or taking cases they lose that income just like you would if you stopped going to work. Rich people might not look much different from your self, they may be wearing older clothes or driving older cars and still be wealthy. This is because one of the traits of the modestly rich is that they still remember that frugality is one way to increase savings that will be shifted into investments that will produce those residual income streams.

A business you own can be another job, like the doctor or lawyer example, or the residual income stream you would like to have coming in, like an author or songwriter who receive royalties. If you start a business, design that business to be a residual income earning business. The business should not take all the time you have in a day, but should start to free your time after the initial set up period. Work smart, not hard. Live frugal. Save and invest. Become as rich as you would like to be. Continue learning, expanding on your financial education.

With three startup businesses before he was 21 years old, Matt Fox has the experience to help you create your own businesses for your financial future. See his blog at http://www.bizmaker.blogspot.com.

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