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Residual income is when you continue to get paid after the work is done. This includes royalties from books, movies, or songs and also income that comes from real estate or business investments where you don’t actually have to be present to earn it. For example, Bill Gates is still making a residual income from Microsoft even though he isn’t working there anymore.
What Is Residual Income And Why Do You Want It?You have probably heard the expression that “the rich get richer while the poor get poorer.” It’s often used to explain the unfairness when it comes to money. However I don’t think this is unfair at all. The reason it happens is because the rich … What Is Residual Income And Why Do You Want It?
What is the difference between residual income and passive income?Passive income is money that is earned from an enterprise that has little or no ongoing effort involved. Residual income is not actually a type of income, but rather a calculation that determines how much discretionary money an individual has available to … What is the difference between residual income and passive income?
Residual income is a number that banks often calculate when determining whether applicants can afford a mortgage. To calculate residual income, the bank determines the applicant's income, and then subtracts the anticipated mortgage, property insurance and taxes. Any monthly payments made to credit cards, installment accounts or student loans also are subtracted from income. Food and utility expenses are not included in the calculation. The amount that is left after the subtractions are performed is considered residual income.