Residual income from home is a term one hears about quite often.
These three pages address the following questions:
Just what is residual income?
How does it differ from other kinds of income?
What does one need in order to generate residual income from home?
Where can I go to get started?
What is residual income?
Technically, according to Dictionary.com, the word residual means: pertaining to or constituting a residue or remainder; remaining; leftover.
Webster's Online Dictionary includes an extension to that basic definition: Being continuous, uninterrupted, constant, nonstop or unceasing.
So when people talk about residual income, they essentially mean income that (a) is over and above what one normally needs to live on, and (b) continues to flow constantly (i.e. whether or not one is working at the time). This is why it is sometimes called passive income, meaning you can go to work or run your business, or enjoy early retirement, and at the same time passively enjoy an ongoing stream of additional residual income.
What is renewable income?
Passive income is different from the kind of income the vast majority are used to, which is sometimes called renewable income or now income. This is where you work and get paid for that work. You work again, and get paid again. This can apply to labourers, clerks, people who own a business, and also to professionals such as doctors, lawyers and others.
With renewable income, it's a case of: if you work you earn income; if you don't work, you don't earn income.
This is what most people are used to; so everyone looks for a job or a professional career to earn income every week and month.
Smart people, however, see the road ahead and decide that not only will they work now and get paid now, but they will also put in some time to build up a second income of a residual kind.
In this way, they can enjoy a better quality of life as their second income grows, and once it is big enough to live off, they have the option to stop working and continue being paid a monthly income anyway. Some use this opportunity to start a career doing what they really love, instead of just working for a salary until retirement. They can do this knowing that their cost of living is covered by their residual income from home.