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Residual Income Ideas to Build Your Wealth

Most people believe that money is created through active income. They  rarely think about passive income or even residual income as a source to  generate wealth or financial freedom.

Wealth is thought of as being reserved for those that have the means to create and make money.

Why can’t we be part of those people that are wealthy? What rules  restrict us from being able to make this wealth for ourselves and our  families?

When exploring the means of creating wealth without using active income,  we come across two types. There is passive income, and there is  residual income. They both act very similarly, but as we talk about  finance, it is better to think of the residual income.

What is Residual Income?

Residual income is an income that can be passive. The calculation  determines how much profit or excess income is available after all  expenses are paid off.

Residual Income vs. Passive Income

In the end, you take the revenue you have created and subtract it from the involved costs. That is your residual income.

Different Types of Residual Income

Personal Residual Income Corporate Residual Income

10 Ways to Create Residual Income

Invest in Real Estate

Owning real estate can be a great way to generate monthly income. You  can purchase a single-family home, duplex, or even apartment building.

Vacation Rentals or Short-term rentals

Airbnb has become huge over the last many years. If you have a free room  in your house, you can rent that out. It is an excellent opportunity to  make extra money without having much work to put in it.

Invest in the Stock Market

Investing in the stock market is one of the simplest ways to create a  passive income stream. Have you heard of index funds? They are one of  the simplest ways to build wealth with your money in the stock market.

Invest in REITs

REITs are real estate investment trusts. These are companies that will  buy up real estate and use your money to help them do it. You will get  dividends from the residual income that the company makes off of its  property.

Start a Blog

Starting a blog can be challenging work that takes time and money to  make things happen. If you want to capitalize on something with a high  ROI, creating a blog can be a way you can do it.

Launch a Podcast

If you enjoy talking with people or sharing ideas, you can start a  podcast. Many podcasts pop up all over the place, but it is a newer  field compared to the blogging world and offers many opportunities.

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