Residual income is what is known as passive or investment income. One could say that residual income is income that comes in every month based on work that was performed in the past or an investment that was made in the past. The opposite of residual income would be paycheck income. Paycheck income is what you get when you trade your time for money (paycheck).What types of residual income exist? The prime examples are royalty income, interest income, and investment income. Royalty income comes from copyrights, license agreements, oil and gas leases, etc. An author can write a book and enter into a contract with a publisher who agrees to pay a royalty on every book that is sold. Every time a book is sold, income is generated for the author. Every month, the publisher sends the author a check in her mailbox for the sales of her book over the past period. The income comes in as long as there are sales of the book. The author does not have to write anything else to get that stream of income.An inventor can invent a new product or idea that can be patented. For example, a woodworker conceives of a […]

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