![]() ![]() Here’s a look at some of the common areas that make use of this income. Residual income can have different meanings in different contexts. The main idea behind residual income is to account for the expenses involved in creating passive income streams. The commission Tom pays to his affiliate partner and the taxes he pays on his overall affiliate earnings are deducted to arrive at his residual income. When visitors to his blog click on those links, he generates passive income. For this purpose, he inserts affiliate links in some of his posts. The reason people often use “residual income” and “passive income” is because they make a residual while earning passively.įor example, a blog owner – let’s call him Tom – decides to earn passively. If you search “residual income meaning” on Google, dozens of interpretations will pop up, with some suggesting that residual income is the same thing as passive income. ![]() ![]() Most people get paid when they trade time for money, meaning there’s active work involved in generating that income.īut there are many residual income opportunities that can make you money with little effort on your part.īy creating streams of residual income, you can increase your wealth and gain control over your finances. You might have heard of discretionary income, which is money that you can spend at your discretion. Although residual income can be used to describe the sum of money you continue to earn after doing upfront work, it mainly refers to the net income you get after covering your expenses and debts. ![]()
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