Do you know what a residual income is? It is a particular kind of income which is known by a number of different names including passive income and recurring income. This type of income keeps on generating even after the layout of initial efforts. To put it in simple terms, passive income is the case where you continue receiving money even after you have finished the work.
More about residual income:
Residual income includes all of the royalties that you receive from movies, books, and songs. It also includes all of the income that is gained from business investments or real estate where it is not necessary for you to be present in order to earn the income. A great example of this is of Bill Gates. He still gets to make passive income from his company, Microsoft although he no longer works there.
This kind of income comes from constructing such an asset that keeps on paying you even after the work has been finished. For example, a movie, book, or a song becomes an asset for all of those people that gain royalties from these things. Similarly, a house is also an asset for the landlord to whom people pay rent. Also, a business will also be considered an asset for the owner of the business that does not need to get involved in all of the daily activities in order to get the money.
Things to keep in mind:
A lot of people talk about the residual income. As a result, an impression has been created that you can earn a good amount of income without even doing anything. However, the truth really is that you would need to keep an eye on everything in order to ensure that everything is running smoothly.