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What is residual income?
posted by Alecia @ 2:06 PM
Tuesday, August 19, 2008
We can define passive income as an “Income generated with minimal work from your investments such as dividends, interest, or real estate rentals”. Passive income business initially requires investment of time and money but once income stream is established then minimal work is required to maintain the regular flow of passive income.
Residual income (also called passive residual income or recurring income) is income that continues to be generated after the initial effort has been expended. On the other hand compare it to what most people focus on earning: linear income, which is “one-shot” payment in the form of a fee, wage, commission or salary.
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