What Is Residual Income?

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10 Residual Income Ideas to Build Your Wealth

When exploring the means of creating wealth, there is passive income, and there is residual income. Both act very similarly, but as we talk about finance, it is better to think of the residual income.

What is Residual Income?

Residual income is an income that can be passive. It is the leftover money we have after we have paid off any personal or business debt.

Residual Income vs. Passive Income

 The money that comes from all that work is passive income. Residual income is the same, but you calculate how much profit you get from the passive income.

Personal Residual Income

In personal finance, residual income is the disposable income. You can calculate your residual income every month by taking what is left over after paying all debts.

Corporate Residual Income

Corporations use residual income to assess their performance. They use residual income to evaluate the effectiveness of their investments, their teams, and their departments.

Invest in the Stock Market

Have you heard of index funds? They are one of the simplest ways to build wealth with your money in the stock market.