What Is Residual Income?

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10 Residual Income Ideas to Build Your Wealth

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

Let’s get these two things straight. 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.

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