How does residual income work?

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asked Apr 12, 2019 in Other-Finance by bonniezf1 (320 points)
How does residual income work?

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answered Apr 12, 2019 by MrMoonPie (10,690 points)
Residual Income is money or income that comes to you continually month after month or week after week years after the work has already been done.

So once you do the work and that work starts bringing in income then the asset can continue to make you income for many years without having to work again to get that income.

A few examples of residual income would be a movie, song or book that you worked on and continue to get royalty payments for that work you done years ago.

Or another example of residual income is blogging which can be both passive and residual because posts on the blog that you wrote years ago can continue to bring in money through Ads, Affiliate Programs etc.

All that income would continue to come to you even if you don't continue to work for that money.

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