Most people trade time for money. This is what we learn growing up. Work 40 hours per week and get paid “X” per hour. The problem with this system is that it has major limitations. There are only so many hours in a week. Your potential earnings are therefore capped. And that sucks.

Rich people have developed smarter systems. They are not limited by time or hourly wages. One of the ways the rich become wealthy is by earning what is called “residual income.”

So what is residual income? Simply put, residual income is when you earn money over and over again for something you do once. For example, if you write a book one time and then get paid for that book over and over each time a new copy sells, you are earning residual income. You are not hampered by time or hourly wages. Your earnings potential is not capped. And that is anti-suck.

Trading time for money is a flawed system. You’ll either be broke by not working enough hours or be tired by working too many hours so you can have more money. The key is to change the system you’re using. Find a creative way to develop residual income (which is one of the things I teach) and you’ll gain control of your time, your finances, and most importantly, your life.