Category Archives: Residual Income

Are you happy with the 45-Year Plan?

Have you ever heard of the 45-Year Plan?

Watch this video, and I’ll explain it to you….


So what is the alternative?


Well, they reckon that about 5% of the population is financially independent or rich. The rest are surviving on benefits, or are following the 45-year plan.


The 45 Year Plan

The 45-year plan is what we are taught at school:

Work hard, get good grades, get a job.


So you get a job after leaving school/college/university and usually your income rises over the first few years as you gain experience, business knowledge etc. Then you reach your peak earnings, usually around age 30, and your income will usually stay about the same level, rising a little with inflation, maybe dropping if you have to look for another job. Then, at around 65, you retire.

You retire and have lots of time……. but no money. You are now living on a state pension, and maybe a company pension if you have been disciplined enough to pay into it for the last 45 years. They often don’t amount to much.


This is what the 45 year plan looks like…


The top 5%

Now there are some exceptions to this. The top 5% are rich, or financially independent. They usually become rich by having their own businesses.


Why don’t we all start a business?

Most people don’t want to start their own business. There are usually high start up costs, the risk of what if it doesn’t work, problems with staff, all sorts of reasons.


The alternative?

An alternative to the 45 year plan, living on benefits, or risking it all in a traditional business, is a Home-based business.


Home-Based businesses are really taking off now, from using and promoting healthy aloe-vera products, marketing utilities, and home shopping such as Avon or Kleeneze (my home-based business).


So why are they better than starting a traditional business, or just sticking to the 45-year plan?


There are many benefits to having a home-based business…

  • Flexible Hours
  • No Boss
  • Take time off when you want


But the biggest benefit is the residual income.


Home-Based businesses usually follow a model where there are two ways to earn income.

  1. Commission from your own sales.
  2. Bonuses from sales of people you introduce to the business. 

and the second of these provides the residual income.


Typically, you start your business, and sell some product or service, then you share the opportunity with a friend. He also sells some of the product and service, and you get some extra bonus as a result. You introduce another person to the business, and your friend introduces one or two, and your bonus gets bigger. And so on.


If you persevere, support and coach your team members, your income changes from the 45 year plan (see above), to this…


45 year plan - the alternative



As you can see, it can take a while before your team members start recruiting people, who start recruiting people, and so on, but when they do, that is when your income takes off.


THEN, when you retire, you have a lot of time on your hands, AND money to spend aswell.


If you’d like any more information about working with me, just enter your details in the boxes at the top of this post.


Bye for now,

Chris Smith