Residual income is money that continues to be earned after the initial effort has been made. Unlike active income, which requires ongoing work to generate earnings (like a salary or hourly wage), residual income keeps coming in with minimal ongoing effort.
Common Types of Residual Income:
- Investments – Dividends from stocks, interest from bonds, or rental income from real estate.
- Business Ownership – Earnings from a business where you are not actively involved in day-to-day operations.
- Royalties – Income from books, music, patents, or other intellectual property.
- Affiliate Marketing – Commissions earned from promoting products or services online.
- Online Courses & Digital Products – Revenue from courses, eBooks, or software that sell repeatedly.