Monday, April 10, 2006

The power of residual income….

A few months back, Big Dave asked me to post on residual income. I think this would be a great time to do that. How many of you know what residual income is? It is doing something once and being paid over and over again. An example of this would be Elvis. He wrote songs, sang them and recorded them. Every time that song is played on the radio, or used for a commercial, his estate is paid a small fee. I’m sure his family is making some great money off of this residual income.

Most of us work for "earned income." Let’s say that you worked for Bath and Body Works. You go in each week, work forty hours and on Friday you get paid for that weeks work. Next Monday you have to go back to work to earn more income. You get paid for actual hours worked. If you get sick, and have to take a week off, you don’t get paid, you earn no income. No pay check on Friday and you still have to go back to work on Monday and start earning income again.

If you get sick, while earning residual income, you don’t have to worry about getting paid. You get a check in the mail each week even while you are home sick or taking a week off. I happen to like this method of earning income.

My husband, TF, is a locksmith. He owns his own business and he has to work to get paid. For the last two weeks he has been sick with a nasty throat infection. He just finished taking his second round of antibiotics today. All in all he missed about five or six days of work. We probably lost about $1,000.00 of income during this period of time. “No work, No pay”! He can’t take more than four days off in any one time period. If he did, not only would he loose business, he looses customers. His customers depend on him to be there when they call. Most people want there care keys NOW!

I, on the other hand, work for bonuses, commissions, and residual income. I have two businesses that earn residual income. One of them I have been working for four years and I have a nice residual coming in. The other one I just jumped into.

At our age, we are thinking of retirement income. I don’t want to depend on the government for my retirement. TF is a retired police officer and he receives a small pension from that. We have our share of investments and depending on how those work out, will give us a few more dollars. One thing I don’t want to do is depend on Social Security. This is the reason I am earning residual income. I do not want to be on poverty level when I retire. TF and I decided to take the bull by the horns and earn multiple streams of income. If one falls flat, we have other income coming in.

My new business is growing by leaps and bounds and should provide us with some great residual income. If it keeps up this growth, TF should be able to retire from locksmighing in about a year. This enity is inflation proof and a necessary commodity to most 99.999% of the people I know. I sell electricity for a Retail Energy Provider. Do you know anyone who uses electricity? I’ll bet you do. We are an REP in the state of Texas. Our price is better than the “Price to Beat” provider in all of Texas. We offer two plans, 1) a month to month plan, 2) a plan where you lock in to a rate, for a whole year, that is lower already than the “Price to Beat” provider.

If you live in Texas and would like to learn more, take a look at my website at: http://stern.igniteinc.biz/ If you have any questions, I can show you how to save money on your electric bill and/or earn residual income by signing up other electric users. Our company pays independent associates instead of spending millions on massive advertising.

Yes, I love residual income! I also like saving money. Those of you looking to make extra income, for whatever reason, should take a look at a company that offers residual income.

17 Comments:

At 4:06 AM, Blogger Pragmatician said...

Too bad I don't live in Texas, this energy plan seems interesting and I would help you with building up a residual income.

Interesting post, isn't it crazy though that a song from 50 years ago is still 'making' money

 
At 7:28 AM, Blogger Michelle said...

How very interesting. I've not really thought about residual income before. I don't think it's that popular here as it is in the States perhaps. Very interesting.

 
At 9:36 AM, Blogger Drywall Mom said...

Hey mom, Just remember, you in companies like that you are constantly having to keep people interested in selling or keeping the service that you offer. I cannot do companies like this for that reason. They are for certain people so if you like it, go for it. I just think that those take alot more work that they actually are letting on.

 
At 10:49 AM, Blogger Lucy Stern said...

Jennifer, Who doesn't need electricity. If you had to let go of things that you were buying, would you keep your dental plan, your vitamins, your make-up. I'll bet that you would drop all of those things before you stopped using your electricity, especially in Texas. Mayor Bill White was on TV last Friday night telling people that there are ways to save money on their electricity. I heard him on the radio yesterday advertising the same thing. He gave us the biggest advertisement we could ever ask for. Since then I have actually had calls from people asking me to show it to them. I couldn't be happier.... All I have to do is tell people how they can save on their electric bill and show them the options. When I get my checks in the mail I will "show you the money". The residual income comes in from the factor that I signed up the customers. They pay their electric bill and I get paid. I do not have to collect the money, do customer service or anything like that. The home takes care of all of that. We are there to gather customers for the company. We get paid instead of "Tom" the Reliant guy.

Yes, it means that you cannot be a secret agent. You just tell and let the service sell itself. I love it! The company started last March and since then have put on 200,000 customers. So far our company is only in Texas, but as other stated deregulate we will expand. The company also took the time to get the work done so that we can also sell gas when it deregulates. Can you imagine the potential in this?

Dad and I are going to retire with no financial worries. We will not have to depend on anyone to take care of us "moneywise" in our old age. That is one worry you won't have. Hopefully Dad and I will have good health and live a good life. We still have goals and dreams.

 
At 2:31 PM, Blogger DayByDay4-2Day said...

That is very interesting. I wonder what kind of residual income is availinble here in Michigan.

 
At 4:38 PM, Blogger Big Dave T said...

Whew, for a second I thought you were going to pitch some real estate investment scheme. I guess I'm not worried about Social Security since I know the political power of the baby boomers. But I think financial security is something that can't be taken for granted, that's for sure.

Thanks for the post.

 
At 6:55 PM, Blogger Drywall Mom said...

Mom, I hope that you are right. As long as you get into it before everyone else does you should have a chance to do well at it. I do hope the best for you. It will not be easy but if anyone can do something like that, you can.

 
At 7:27 PM, Blogger BarbaraFromCalifornia said...

I agree...This energy plan sounds fantastic.

Wishing you and your family a very Happy Easter, Lucy, and hope it is peaceful and meaningful for you and your family.

 
At 7:37 PM, Blogger Rachel said...

How neat to have residual income. I wish I had some or knew some way to make some here from home. I'd sure do it!

That is great to not have to depend on anyone in your old age.

You are doing a good job!

 
At 1:42 AM, Blogger Jennyta said...

I have just discovered your site via Michelle's and find it really interesting. My husband too deals with locks, key-cutting, car security etc. here in Wales.

 
At 1:53 PM, Blogger Mountain Mama said...

It sounds like you are doing all the right things.
I hope it all works out as planned.

 
At 4:45 AM, Blogger Merle said...

Hi Lucy ~~ Sounds as though you have it all worked out. Good luck with it.
Thanks for comments at Herons Nest
Have a Happy Easter, Cheers, Merle.

 
At 6:06 PM, Blogger Tab said...

Just stopping by to wish you a wonderful Easter holiday :)

 
At 6:25 PM, Anonymous Nettie said...

Interesting company example, although I don't make that much!

 
At 7:34 AM, Blogger Danny Sims said...

You always have a good insight and something practical. Thanks.

 
At 7:25 PM, Blogger Viamarie said...

I'll check this out. Am not too sure if they offer this in my country. Thanks for the information.

Happy Easter!

 
At 1:54 AM, Blogger Michelle said...

Just dropping by to wish you and your family a happy easter weekend :o)

 

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