FINANCE
Linear Income versus Residual Income: Knowing the difference will change your life.
LINEAR INCOME
First, let’s address what is understand to be linear income Employees, independent
Contractor, and self-employed by three owners make up the linear income bracket.
Linear income earners are only paid for the specific time expended. Or paid directly
Proportional to the numbers of hour invested in their job.
Again, linear income earners cannot leverage their time and effort, Leveraging
What creates the wealthy/ rich?
Social class and the absence of leveraging is what create the middle to impoverished social classes. This is obvious in contemporary under develop country today.
Sadly, linear income earners can be tired of down-sized or retrenched at anytime
If u are abreast with the happening in our Nigerian society, u may be aware of a
Couple lay offs or retrenchment, downsizing, rightsizing, corporate restructing,
Streaming or re-organization: What ever it is called that has taken place in
Are cently. The consequence of this is that INNOCENT Workers LOST and Will
Still continue to LOSE their Jobs! It’s a stage every developing economy passes through
(In a bid for greater efficiency according to capitalist thought). It is a stage of trying to
Achieve more with fewer Workers in order to cut costs and boost profit.
The rational is : if one person can cut the work of three, Why not sack two and save money. It has happen even in some developed economy.
I bet you have not been missing headlines such as these:
* SHELL to lay off 20% of its staff.
* FG to sack 33,000 Workers
* 51,000 railway Workers sacked without benefit.
* Over 30 million Nigerian unemployed e.t.c.
Let’s consider the case The Anglo-Dutch oil giant SHELL and its Laying off of 20%
Of its Work force as part of a cost cutting drive. This is what a shell spokes man had
25%: There is a staff audit going on. This will surely involve rationalization to save
Costs. It is important to look at Where we are coming from and Where we are and
Where we are going,, There is nothing wrong with this statement, but think of its
Consequences.
As long as you are sweating it out in a company that is not yours. You are a
Potential victim no matter your rank or your position. Please note that I’m not
Trying to instill unnecessary fear, I am only opening your eyes to a fundamental
Truth and the harm that extreme capitalism has done to our economy and Will
Do in the nearest future.
RESIDUAL INCOME
Now, the alternative income bracket is the residual income earner. I will let you decide
Which of the two is better?
Residual income earners consist of business owners, those in the entertainment industry, authors, investors, successful entrepreneurs and network marketing associates which
I am not about to give you. Their income continues to be generated after initial effort
Of building the big has been expended.
Residual income earners don’t Worry about (clocking in they can be absent for period of time and still see consistent income from their business. As a residual income earners could be
In the shower could be at home having more time for your self and for your family you
Could be a student (whether under grate or post graduate) receiving lectures in the
University while money flocks your bank account.
Residual earners stems from their business or businesses. They are the boss:
They control their business success and achievement. Would not like to be in that position if u is already with your own business u can pass it to your children in return you are leaving a family legacy. You are able to leave your children with a ready made pipeline of income versus your present job, retiring and leaving your kid with nothing but debt.
