King bell
VIP Contributor
There are two types of income: linear and residual. Linear income is what you earn from a job – it’s straightforward and predictable. Residual income is what you earn from investing, and it can be much more lucrative. But it’s also more risky.
Linear income is what you earn from a job. It’s a straight line – you do X number of hours of work, and you earn X number of dollars. Your income is predictable and dependable, but it’s also limited. You can only earn so much per hour, and there are only so many hours in a day.
Residual income, on the other hand, is what you earn from investing. It’s not a straight line – your earnings can fluctuate, and there’s no guarantee of success. But if you do succeed, the rewards can be much greater than with linear income.
The key difference between linear and residual income is risk. Linear income is safe and predictable, but it’s also limited. Residual income is riskier, but the potential rewards are much higher.
So, which is better? It depends on your goals and risk tolerance. If you’re looking for stability and predictability, linear income is a better bet. But if you’re willing to take on more risk for the chance of greater rewards, residual income is the way to go.
Linear income is what you earn from a job. It’s a straight line – you do X number of hours of work, and you earn X number of dollars. Your income is predictable and dependable, but it’s also limited. You can only earn so much per hour, and there are only so many hours in a day.
Residual income, on the other hand, is what you earn from investing. It’s not a straight line – your earnings can fluctuate, and there’s no guarantee of success. But if you do succeed, the rewards can be much greater than with linear income.
The key difference between linear and residual income is risk. Linear income is safe and predictable, but it’s also limited. Residual income is riskier, but the potential rewards are much higher.
So, which is better? It depends on your goals and risk tolerance. If you’re looking for stability and predictability, linear income is a better bet. But if you’re willing to take on more risk for the chance of greater rewards, residual income is the way to go.
