Inflation and economic trends require families to have two incomes just to stay even with their expenses. It may be that, in the future, even two incomes will not be sufficient. It is a good idea to be prepared for bad economic times rather than to simply hope for the best and suffer if the best does not come. Families should have multiple sources of income to guard against an insecure future. It is very important to have a source of extra income.
Wealthy people have always known that it is important to have more than one source of income. If one of their income sources fails for some reason, they always had fallback sources to carry them through. People with ordinary, average incomes generally face problems if they lose just one source of income. The loss will have a dramatic impact on their lives, and it could take years before things return to normal for them. Physical and emotional health can also suffer as a result of financial uncertainty and stress.
Having more than once source of income, or extra income, offers a safety net. If one income source disappears, the others will still be there to lessen the blow. Having extra income gives individuals time to reorganize and consider their options. Everyone alive today can appreciate the benefits of having an extra income.
There are two types of extra income. Linear income is extra income that is earned on an hourly, weekly, or monthly basis. No future commitment from either the worker or the employer is associated with this kind of income. Residual income is income that results from working hard one time and reaping the benefits of this work for many years into the future. A single effort is rewarded repeatedly.
Individuals receive linear income through a job or profession. They earn only for the time that they actually work on a daily basis. Some people earn a higher linear income than others. Smart people typically attempt to move away from linear income to residual income by obtaining extra income that will secure their future retirement. Individuals should begin by focusing on one residual extra income effort per year.
The Internet provides many options for extra income, but individuals must be careful when making a choice. There are many scams and get-rich-quick schemes online that are not legitimate residual income streams.