Is Now The Time For You To Get On The Pathway To Financial Freedom?

The face of an analog clock provides a great lesson in building Multiple Sources of Passive Residual Income. This is the money that leads you to financial freedom.

Look at the face of a clock and let's assume that each minute represents 15 months of your life. The full 60 minutes would be a life of 75 years. At about 16 minutes you begin your career. If you work till retirement age, around 65 years old, 52 minutes have past.

Generally the most productive years of our life occur between 16 minutes and 50 minutes, give or take some seconds. We get a job. We work hard for a raise. We may get promoted. Possibly our company must downsize so we have to find a new a different job.

Then it all starts again: the raise, promotion, a possible relocation, and another possible lay off due an economic downturn. All this time we are hoping against hope to retire with something to show for it all. We do this for 36 minutes of our 60 minute life.

Creating Multiple Sources of Passive Residual Income allows you to in 3 minutes + 20 seconds what you couldn't accomplish in all 36 minutes of hard work! When you have a job, your money stops when you stop working.

When you have Multiple Sources of Passive Residual Income you work ONLY if and when you want to and money continues to flow into your bank account no matter what.

3 minutes + 20 seconds = 4 years! Here's the beauty of this – a consistent 4 year commitment to creating Multiple Streams of Passive Residual Income will give you financial freedom for the rest of your life.

After working to create this kind of income for 3 minutes + 20 seconds, you can enjoy the next 10, 15 ,or 30 minutes of your life (or more!) doing what you want to do, where you want to do it, and with whomsoever you please.

Strategies To Create Financial Freedom (Strategy #1)

STRATEGY 1: Create Multiple Points Of Distribution & Sales

If you are the only one selling and distributing your product or service, just like in a job, when you stop selling so does your income. Selling is "linear income"; namely, you do work once and get paid once for the work you've done. Now yes, I do admit that selling can provide you with a very nice income, but it stops when you stop selling!

When you create Multiple Sources of Passive Residual Income you have "walk away" income. In order to do this you've got to create multiple points of sales. Rather than trying to get as many sales as possible you should focus on getting many people making a few sales each.
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EXAMPLE: Owning a Vending Machine
(*adapted from Jordan Adler's book "Beach Money.")

Let's say I sell you a vending machine for a $1000. The machine dispenses candy bars, nuts, and potato chips for $1.00 each. Every time some buys an item from the vending machine you make ten cents. Then let's also say that I will keep the machine stocked with candy, nuts, and chips and I'll also include life-time maintenance on the machine. So is this sounding good to you?

I'll collect all the money from the purchases, count the money, provide you with a monthly accounting, and send you a check for your earnings. But that's not all.

I will also give you unlimited opportunity to collect this ten cents fee on multiple vending machines in multiple locations. All you have to do is get me as many locations as possible to place vending machines.

Each time someone makes a purchase at one of these machines you get ten cents. How's it sounding now? What if you had 1000 machines, or even 4000 machine all over the country?

Obviously your goal in this strategy is to have as many vending machines as possible in as many locations. You only have to buy one machine yourself. You have no product to buy, no maintenance costs, no accounting hassles – I do all that for you.
Your main job is to find other people who want to own a vending machine then you teach them how to do exactly what you're doing.

For this strategy to work you must focus on the distribution of the machines – NOT selling candy bars, nuts, and potato chips! As your network of machines and machine distributors grows, you get a percentage of the ten cents commission from each and every sale throughout your entire network.

This would give you some serious passive residual income (a.k.a. "non-linear income")! This same strategy of creating multiple distribution and sales points is how any direct sales business works.

The more distribution points you can set up for selling a give product or service the more money is made. Once it's all set up do you know what you have to do keep getting paid? NOTHING!
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If you're good at sales that's great, but it won't give you the "walk away" money I was talking about earlier.

Do You Have "Multiple Sources Of Income" Flowing Into Your Bank Account?

Copyright © David Lazear

There's a well-known cliche that says “Don’t put all your eggs in one basket.” This is what is behind the concept of "Multiple Sources of Income". It is key to creating more wealth in your life.

Why are multiple sources or multiple streams of income important?

Most people have just one income source – their job. However, if you have only one source of income and that source dries up, you'll be in trouble. This has been dramatically demonstrated over the last year as the unemployment rate in the United States has soared to 10% and higher!

When you have multiple sources of income, you are assured that if one source of revenue stops producing profits for you, you still have money flowing into your bank account from other sources. Diversification is very important.

For example, lets say that in addition your regular job you have an online business that sells different products. At the same time you could own a couple of rental properties and be invested in the stock market. When you diversify your investments, if something fails you still have other streams of income.

The idea is not to jump from one thing to another to another and never settle down on anything. The idea is to work hard on one thing and, once it is generating profits for you, move on and get into a creating another income stream without neglecting the first stream.

So here's the formula: set up a stream of income, place it on autopilot, and let it produce profits for you while you are setting up another stream. If you repeat this process several times you'll eventually become financially free!

This is one of the true keys to wealth. Many people become rich not by doing something huge, but by doing many small things that work.