The Magic Doubling Penny
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The Magic Doubling Penny

Today I am going to cover a concept that is simply remarkable in it's own way. The American Internal Revenue Service has three broad categories of income and they are as follows: active or earned, passive, and portfolio. We will focus on passive or residual income.

Residual income comes in regular intervals with little effort to maintain the revenue stream. However, you will have to work to earn that revenue stream before it can be flowing like Niagara Falls.

One perfect example I can think of in terms of residual or passive income is the pennies on the dollar program I had to write in college. We were to use a program called VisualBasic and create a computer program that would compute how many days would it take to make one million dollars by starting with one penny and each day it doubles. The results are astounding and who would have guessed how few in number the days are to accomplish that.

Here are the calculations for that program:

Day 1: we start with 1 cent

Day 2: now it doubles to 2 cents

Day 3: it doubles again to 4 cents

Day 4: 8 cents

Day 5: 16 cents

Day 6: 32 cents

Day 7: 64 cents

Wow! At the end of one week we have made a whopping 64 cents. I think I could retire off that amount of money......not exactly the case.

Day 8: $1.28

Day 9: $2.56

Day 10: $5.02

Day 11: $10.04

Day 12: $20.08

Day 13: $40.16

Day 14: $80.32

Two weeks have passed and now our 1 cent investment has gained some momentum and we increased our production by $80.31.

Day 15: $160.64

Day 16: $361.28

Day 17: $722.56

Day 18: $1,445.12

Day 19: $2,890.24

Day 20: $5,780.48

Day 21: $11, 560.96

We are rolling in the cash now baby! This is looking pretty good for the home team.

Day 22: $23,121.92

Day 23: $46,243.84

Day 24: $92,487.68

Day 25: $184,975.36

Day 26: $369,950.72

Day 27: $739.901.44

Day 28: $1,479,802.88

As you can see it didn't even take a month's worth of time to gain over $1 million dollars. It's hard to contemplate but that's kind of how residual income works. Now these results are just part of a computer program and it would be great if our efforts were that easy. Something like this would take time and knowledge to build a system similar to that.

This example is what initially attracted me to the concept of network marketing. Of course not all network marketing companies are the same. They all have some sort of niche or market real estate established and use people as resources of gaining residual income. If you have the desire to make a residual income there are many options available, you just have to look for them!

Street Talk

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