Residual Income: What Is It and How Does It Work?

A residual income stream will earn you money even when you’re not on the clock. Owning rental units, collecting royalties or investing in a savings and investment program are examples of such passive income.

Residual Income: What Is it and How Does It Work?

Wouldn’t it be nice to earn money while not working? That money is called residual, or recurring, income. It’s what can happen after you put a lot of time, effort and sometimes money into a job to continue to get paid for the work months or years after it’s done. (Salary jobs are part of linearincome. This income is directly related to the number of hours you work. If you work 40 hours, you get paid for 40 hours of work.) Once you set up your business to earn residual income, you continue to make money while doing other things – maybe even starting a new business to generate more residual income!

Learn more »