One of the cornerstones of how we work with clients at Uncommon Wealth Partners is to go beyond the traditional financial planning of investment advice and really roll up our sleeves and help our clients think through a much broader money strategy.
A topic that we always explore is the idea of residual income. Residual or passive income is money you continue to earn after the work is complete. (For most of us our jobs are active income – they only pay us if we keep showing up).
If you listened to the last episode, you’ll remember we mentioning the seven sources of residual income and in this podcast, we wanted to dive a little deeper into each. We explored the seven most common types of residual income and how you can begin to explore which ones might fit your family’s long-term financial plan.
You’ll quickly see that there are many ways that you can leverage your money to get you to retirement, or time freedom as we like to say, faster. It’s not about using them in order or using all of them, it’s more about finding the right options to help you meet your own personal goals of time freedom.
We, Phillip Ramsey and Bryan Dewhurst, are the founders of Uncommon Wealth Partners. We think differently about money.
Our philosophy is simple. We help people no matter where they are today. It’s about where you want to go that matters. We do this by helping each one of our clients define their goals, implement a plan, create wealth, and ultimately create time freedom. There are probably a lot of financial planners who promise the same thing. It’s how we get you there that is different.
We believe that one of the most significant gifts we can give to our clients in the getting to know you phase is to not talk about their money! Instead, we want to know what motivates you? If money were no object what would you do with your time? We believe answering those kinds of questions will help us when we finally talk about your money.
What you’ll learn about in this episode:
- What exactly is residual income?
- Residual Income Source #1 – Insurance
- Residual Income Source #2 – Rental Property
- Residual Income Source #3 – Investments
- Residual Income Source #4 – Small Business
- Residual Income Source #5 – Subscription Business Model
- Residual Income Source #6 – Royalties
- Residual Income Source #7 – Network Marketing
The Golden Nuggets:Yes, and the key here, is residual income is based on your capital working for you, not necessarily your time. – Phillip Ramsey Click To Tweet The subscription model is a really small stepping stone that people could take to start building residual income and building that belief in their passion in order to get that income flowing while they're still at their day job. – Bryan Dewhurst Click To Tweet We have a guaranteed interest rate, we have a non-taxable or tax-deferred environment, and the money still compounds interest even if you access it via a loan, so it's a powerful first step for to start building a residual income. – Bryan Dewhurst Click To Tweet Using insurance as a source of residual income is not a get rich quick scheme at all. It’s a process, a system over time, that produces cashflow, and when done correctly, it can be a complement to other sources of income. – Phillip Ramsey Click To Tweet Investing in real estate is usually a better stream of cashflow than getting in the market. – Phillip Ramsey Click To Tweet There are so many ways you can make your money cashflow by leveraging the bank in a smart way, but also by using your smarts and intelligence to develop a deal. – Phillip Ramsey Click To Tweet From what we’ve seen, owning a business has typically helped people generate wealth and it allows people to pivot in owning different assets or streams of income. – Bryan Dewhurst Click To Tweet We see our clients go down this residual income path, choosing different ways to start and leverage different things, but they catch that bug and that control and that immediate cashflow, and it's so much fun to be a part of. – Bryan Dewhurst Click To Tweet