What is Residual Income? There is a greater awareness movement happening these days. A lot of influencers are talking about it. Many people are trying to create it via multiple paths. We wrote this article for you to join this conversation and add to your financial literacy box. In this article, you will find several income-generating ideas that you might actually do. It is no hidden fact that everybody wants to multiply their finances. Imagine doubling your income while you’re sleeping, how great would that be? This list will give you ideas about these possibilities. So, read on!
What is Residual Income?
The residual income is the portion of your income left with you after meeting your financial obligations. You may say it’s an excess amount after paying all your liabilities, debts, and expenses. Residual income typically means that the income continues to come and may even grow after the job is done. For example, royalties, dividend income, etc. It is unlike active income in which your active work is required.
Residual Income vs Passive Income
Most of the time, the terms passive income and residual income are interchangeably used. Passive income is any income that continues to come in or grow with little or no effort or time, such as passive investment in any business, property, P-2-P (Peer-2-Peer) lending, ..etc. Nonetheless, residual income might require your initial involvement, activity, and time. Then, after some time you start generating income and then your time and efforts might not be needed but the income keeps coming.
So the short question that arises what is residual income then? It is a stream of passive income that can be earned without your active contribution of time and efforts. Passive income is not always residual, while residual income may be passive.
However, both are associated with an automated source of income.
Residual Income Ideas to Generate Passive Income
When you have financial flexibility, you are better able to seize other opportunities that increase your income further.
The idea of making money while asleep excites a lot of people but it has to be done smartly and carefully. In today’s tech world, many tools are there to generate income and create recurrent revenue streams. Below are some ideas for you.
Passive Income from Real Estate
Real estate investment has been one of the best passive investments to generate income and wealth. You can rent the real estate to get monthly income. Or you can flip properties to increase your wealth. If you can’t afford to buy the property, you can sublease a portion of your house for rent. You can invest in REIT (real estate investment trust) with a fraction of the money required to buy a full property yourself. Real estate is a pretty common tool for investment. In fact, 90% of millionaires have invested in real estate.
Stock Dividends for Passive Income
Public companies offer share dividends for the public to buy. When these companies generate profits, the investors get a portion of it. The dividends earn you a relatively steady income stream throughout the life of owning the stock. Investing in dividend distributing companies is a good way to generate income. In general, global large-cap stocks pay dividends consistently and you can search these companies based on their dividend-paying history.
Blogging and Affiliate Marketing
This may sound different, but yes, it is one of the relatively new ways of creating income. This requires writing regularly and well to gain an audience in the long run. Affiliate blogging is a type of content writing that earns you income when purchases occur by readers of your blogs and article writing. Many websites offer this service, such as:
Amazon affiliates
ShareASale Affiliates
eBay Partners
Clickbank
Shopify Affiliate Program
Rakuten Marketing Affiliates
Cj Affiliate Publisher’s Program
StudioPress Affiliate Website
Affiliate marketing means showcasing or selling services or products of an affiliated company. The marketing medium may be writing, videos, or podcasts. However, the arrangement happens through embedding, promoting, and displaying others’ products to one’s audience. All affiliate marketing websites have different conditions to fulfill and all allow earning even when asleep since the web does not sleep. Once your website builds great traction, you can also give ad space and earn through it. Even big companies pay you to run their ads. Google Adsense is a good start. Another added benefit is that building an audience is a “flippable” digital asset that you can sell later on if you are no more interested to own it.
Online Shops
Shopify and Amazon stores are a good way to create passive income. The online shops are able to sell products when you are enjoying the beach, partying in a disco, or sleeping in your cozy bed. You will need an initial amount to invest to create and establish the shop, then a VA (Virtual Assistant) to do the follow-up job. Create your online store and sell to the whole world. When you are tired of it or do not need it anymore, flip it for cash to someone who does not want to start from scratch.
Income with Cryptocurrency
The crypto market is hyped, popular, and with high volatility. Yet crypto trading offers an opportunity for passive income and is increasing by the day. There are many ways through which you can earn in cryptocurrency. However, you need to learn before you start. Spot trading and selling crypto P2P to earn are two ways to make income. Other ways of earning through crypto include:
Mining
Cloud mining
HODLing
Staking
Lending
Forking and Airdrops
However, it shall be noticed that crypto may not be an exclusive passive earning. It requires some effort, and possibilities are there that you may lose as well.
Make Money with NFTs
Technology has created new and different income-making opportunities. NFTs are one of them. The purchase of NFTs totaled $12.6 billion from $162.4 million at the start of the year 2021. That is incredible growth!! It has grown into a major sector to make wealth. NFT (Non-Fungible Token) may include digital art, drawing, music, etc. It’s a digital asset that you can trade and earn. Many ways of NFTs earn you well. You can rent out your NFT and earn by setting maximum borrowing and daily rates. reNFT is one platform that gives renting opportunities to NFTs. Other ways include:
Royalties
Stake NFT
Provide liquidity and earn NFTs
NFT-powered yield farming
Conclusion
There are many ways of creating residual and passive income. We shed light on a few options that allow your freedom of mobility and traveling, and of course, time because time is more than money. We know that the difference between residual income and passive income is subtle and confusing. However, we hope that the passive income-generating ideas have excited you to peaked your interest. Passive income has many benefits and many people depend on it to lead a better quality of life.
We believe in working hard but working hard in the smartest way!
Authored by Afsheen Khan
Edited by Yara Fakhoury
Fujn fuses learning with earning in a fun way. Fujn is made by women for women. Ladies, dare to reimagine your possibilities! Check us out at www.Fujn.us, Fusion spelled F. U. J. N
