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Whats The difference Between Residual Income Versus Passive Income

Most of us have been educated through a schooling system. Normally you finish high school and then move on to college or some other higher form of education. Some even finish at a much higher level, getting thier Masters or PHD which in turn allows them to command more money for the knowledge they've acquired. At some point you must pick what it is you wish to do in society.

Not that you need a diploma or anyone else's approval to become successful at what you do but usually a dgree of some sort shows you have the ability to "finish", among other things. Residual income usually know for money you get a on a consistent basis from things you've already done. Also looked upon as money that is left over from your initial efforts.

Its nickname or also known as (AKA) "mailbox money" and can be obtained by anyone, graduate or non graduate. Usually to keep receiving residual income, one must still be "active" within the company or organization. Should they leave or break "policy", you can expect to stop receiving any further residual money. Replacing the mailbox money with a final termination letter and ceasing any more paychecks as the residual return comes to an end. Passive income is similar to residual income but with one major difference.

You can become inactive once you've achieved passive income. Allowing you to retire from your job but still receive that check. Not to be confused with a pension but giving you the freedom to maintain your preexisting standard of living, while NOT having to work for it (the paycheck) any longer. You hear a great deal of individuals giving testimony to having a residual income, which is what most people strive to obtain and rightly so. This is to be expected when working within a home based business environment or any other self-earned income opportunity.

However, if you can build your residual earnings into an ongoing passive income, you will be better off once you choose to STOP acting (or working) to get the paycheck. Whether it be residual income or passive income, once you get a taste of either one you will most likely want to continue in this manor and grow it to unlimited heights. Allowing you to experience a lifestyle unlike others they may need to report to workplace at a certain time each day, week after week and year after year. If you are currently representing a company or thinking of joining a company that offers residual income as a form of payment. You should check into their company policies and learn how your earned paycheck may be treated, should you choose to move on to another business opportunity.

Losing a residual income after spending your time and energy creating it, could be devastating if you are not aware of its tenure ahead of time.

Aubrey Richardson founder of leading Logos & Clip Art site: LogoFax also creator of popular website teaching others how to build successful businesses online. Want to know more? Find out the dirty truth for free with his popular ecourse today! Goto: Internet Based Business Opportunity

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