What is Residual Income?
People who earn a regular paycheck know how difficult it can be putting any money away each month. With so much going to rent, utilities, car payments, gas, and other expenses, we’re often lucky if there’s anything left over after all is said and done. It’s this kind of paycheck to paycheck mentality that leads many people to worry about issues like retirement, because they aren’t able to contribute anything to that future fund.
For many people, the answer becomes residual income. Also known as passive income, this is money that comes in each month without much time or effort on the part of the earner. While it sounds like getting money for nothing, it’s actually a great way to supplement your monthly income. Common examples of residual income are rent for various properties, royalties from some sort of intellectual property, income from internet advertisements, interest, and pensions. Whatever method works for you, it’s often the key to financial freedom.
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