ABSTRACT
This chapter explores the importance of residual income and different methods of creating it. Residual income is the key to wealth and financial independence because it is not dependent on one's continuous efforts. Income is derived from several sources. Robert Kiyosaki, the author of Rich Dad Poor Dad, classifies those sources into four categories: employment, self-employment, investments and business. Building assets is the key to generating residual income. Acquiring assets involves taking risks, but many people are afraid to take risks. By holding money in cash rather than investing it in the stock market or property, the saver might destroy his wealth in the long term because inflation erodes the purchasing power of cash. Property as an investment has always attracted interest from investors because it is a tangible asset, providing investors with a potential source of income and capital growth. The internet is the ultimate 24-hour money-making machine. The rise of the internet has produced many wealthy individuals.
