What Exactly Is Residual Income? 10 Residual Income Ideas to Help You Build Wealth

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Most people believe that money is created through active income. They rarely think about passive income or even residual income as a source to generate wealth or financial freedom.

Wealth is thought of as being reserved for those that have the means to create and make money. These may be the rich and famous or even those that have inherited money. Why can’t we be part of those people that are wealthy? What rules restrict us from being able to make this wealth for ourselves and our families?

What is Residual Income?

Residual income is an income that can be passive. The calculation determines how much profit or excess income is available after all expenses are paid off. It is the leftover money we have after we have paid off any personal or business debt.

- Personal Residual Income - Corporate Residual Income

Different Types of Residual Income

1. Invest in Real estate

10 Ways to Create Residual Income

Owning real estate can be a great way to generate monthly income. You can purchase a single-family home, duplex, or even apartment building.

2. Vacation Rentals or Short-term rentals

Airbnb has become huge over the last many years. If you have a free room in your house, you can rent that out. It is an excellent opportunity to make extra money without having much work to put in it.