What Is Residual Income

What Is Residual Income?

Linear income is directly proportional to the number of hours invested in it (40 hrs. of pay for 40 hrs. of work), but one of the great advantages of residual income is that once things are set in motion, you continue making money from your initial efforts, while gaining time to devote to other things... such as generating more streams of residual income!

Residual income (also called passive, or recurring income) is income that continues to be generated after the initial effort has been expended. In another words, it is the income that you keep getting for months or even years after the work you did to earn it is finished.

Compare this to what most people focus on earning: linear income, which is "one-shot" compensation or payment in the form of a fee, wage, commission or salary.