Passive residual income is "Beach Money". This phrase was coined by Jordan Adler, in his book called "Beach Money". He used this to to describe multiple sources of passive residual income which leads to financial independence. Basically it means getting paid over and over and over again for work you do one time.

It allows you to go on vacation, sleep late, take a week off and just do nothing; and yes, it allows you go to the beach and get paid whether you go to work or not.

I'm not talking about working hard for your money. I'm not talking about working smarter for your money. I'm not talking about working for your money at all, because "beach money" is 100% Multiple Sources Of Passive Residual Income. It comes in whether you work or not!

Let's take a quick look at three traditional ways people try to increase their income and compare this to the Multiple Sources of Passive Residual Income approach.

1. Get A Second Job --

In this scenario your employer decides your pay and when, if, and how much it will increase. You have limited income potential; namely, you get paid once for the work you do. If you stop working the income stops as well.

vs.

Multiple Sources Of Passive Residual Income --

You are your own boss and you decide your when and how much your pay will increase. You have unlimited potential for making money precisely because you get paid over and over for work you perform one time. If you stop working or take some time off you still get paid.

2. Go Back To College OR Get More Training --

In this strategy to increase your income you are guaranteed a diploma when you graduate (generally in 2-4 years) assuming you attend the required classes and do the required work. However, you'll pay up to $200,000 in tuition costs and you'll basically make no money while you're in school.

vs.

Multiple Sources Of Passive Residual Income --

You're guarantee is that you'll make money while you learn, receiving on-the-job "real life" training. You'll pay less than $1000 to get started. This is your initial investment which you'll earn back quickly. You'll "graduate" in one to four years with residual income already flowing (a.k.a. "beach money").

3. Open A Franchise Or Some Other "Brick And Mortar" Business --

In this income generation scenario you'll have to invest between $50,000 to $200,000+ upfront. You'll have to buy capital equipment and hire and manage employees. Your income potential is limited, generally $75,000 per year AFTER the third year.

You'll have hefty franchise fees to pay along with long-term leases for real estate and equipment. It will likely take you 3-5 years to break even. Basically the business owns you!

vs.

Multiple Sources Of Passive Residual Income --

Here there are no employees to manage or pay. There is no initial capital investment (other than your nominal start up fees which are usually less than $1000). You have unlimited income generation potential - up to $1,000,000 in the first three years.

You have no franchise fees. You work from home, so there are no additional real estate fees. You make back your initial investment and start getting paid immediately. You have total time freedom so you can work when (and if!) you want.

Clearly learning to create multiple sources of passive residual income is the only model which will lead to a life-time of serious income growth and financial independence.