Residual Income

Residual Income is also called "Passive Income" or "Recurring Income." This is income that you keep making again and again, after your original effort. Residual income is similar to earning interest or dividends on money that you have saved. Contrast residual income with linear income, which is a one-shot fee, wage, commission or salary. Linear income is where you trade hours for dollars, ie: You work 40 hours, you get paid 40 hours. Your pay stops when you stop working... Residual income keeps going indefinitely. You can either work hard and get paid once, or work hard and keep getting paid over and over again...

One of the great advantages of residual income is that once things are set in motion, you continue making money from your initial efforts, while gaining time to devote to other things... such as generating more streams of residual income.

Ways to Generate Residual Income

1. Royalties from a book or song you write.
2. Pay from being an actor in a show or movie that re-runs. 
3. Buy oil and gas royalties, or strike oil.
4. Purchase real estate and rent-it-out.
5. Earnings from internet advertisements on websites^.
6.  Dividend and interest income from owning securities, such as stocks and bonds,
7. Succeed with network marketing.

Passive income is an income received on a regular basis, with little effort required to maintain it. Making residual income is about working in a way that pays not one time, but continually. Residual income is all about diversification and ensuring different sources of income.

Another common definition of residual income is any income generated through indirect involvement with something. The idea of residual or passive income is popular since the potential of earning extra money without additional time or effort is possible.

 

How to calculate residual Income...