Super Funds

Why Residual Income Is Better Than Superannuation

During our entire working life we worry about how much money we have, how much we spend now and especially how much we will need for retirement. Do you often feel as though all you ever think about is how much money you either do or don’t have? Well you’re not alone, everyone thinks about it at some point, some more than others. Obviously we need to plan for our retirement, but at the same time, we want to enjoy our life now, and that can be very difficult if by the time you pay the bills, you have to find some left over to put away for your superannuation. At the end of the day there is never too much left over, sound familiar?

Planning for retirement is important, but it does not have to turn into a major issue that consumes what left over money you earn. There are other ways to save for retirement other than just contributing to a super fund. Having multiple sources of income is a huge advantage, and one that is a proven success by the many successful entrepreneurs around the world. They all built their fortunes from multiple sources of income, and you can be sure they have their retirement plans well and truly set for life.

Multiple sources of income does not mean having 5 jobs. It means working smarter not harder, and making money work for you. And one of the best ways to do this is by creating a residual income. Residual or passive income is recurring income that continues long after the initial work you did to create it. It is slow building, but well worth the effort, as over time, it’s momentum picks up and can created abundant wealth. People earn residual income in many ways, including writing books, owning real estate, music CD’s, vending machines etc. But there are also many home based business concepts that offer a residual income, and they have proven to be hugely successful. Becoming an Independent Business Owner and working a home business that works on residual income is an excellent way to build on your savings for the future. The good thing about residual income is that it keeps coming in month after month. Unlike super which once you spend it it’s gone, residual income keeps coming in. So if you spend it this month – no worries, there’ll be more again next month!

It’s important to know that residual income doesn’t happen over night, it takes time to build, so it’s vital that you start now. Don’t waste time thinking about it, act now. If you start your own home business part-time around your current employment, you can still save for your super, but you will have the satisfaction of knowing that in the background you have this recurring income building momentum, which will provide you with a much richer retirement.

There is no limit to how many passive incomes you create, if you have the passion and the drive then it is endless and the best part is, if you work it right, you can retire a lot earlier than you had first planned. That has to be the best incentive of all so get started now.