How to set up multiple streams of Residual Income
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Residual income – also referred to as passive income periodically – is money that you earn from past actions, or automated systems, that don’t require your future time involvement.
What is Residual Income?
Residual income is income that you continue to receive after the completion of the work that produced the income. Some common examples of residual income include rental properties, dividend income, licensing opportunities, interest income, royalties, etc.
Residual income is often referred to as passive income, and they are very close indeed. I suppose the difference would be that passive income insinuates the least amount of work possible to generate income, while residual income implies that you had to work to generate the income, but now it continues to come in long after you have stopped working on that task.
My personal favorite form of residual income is the cash flow I receive from tenants on my rental properties, but there are so many ways to build these streams of income if you are resourceful!
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