5 best ways to earn Residual Income
Residual income is sometimes referred to as passive or recurring income. It includes income that continues to be generated after the initial effort has been expended. This is compared to linear income, which is “one-shot” payment in the form of wages or salary.
- Look for residual income sources that fit your life naturally.
Listen to your group of friends, answer emails, and open your ears to people starting their own business. Sometimes it’s best to diversity your residual income and have it come to you from many different sources. It might be worth your time to find several opportunities and have them work for you.
- Analyze the marketplace and plan for how to fill in the gaps.
There are many people out there writing blog posts for sports or movies. If it’s something you enjoy than it doesn’t even feel like work. Get to it and the money will be making itself.
- Narrow your field of residual streams to 3-5 of your best options.
Take your first go as a trial run. Remember what you did well, and what you didn’t. What worked, and what didn’t. Try to pick the option that doesn’t involve too much upfront capital. This way you make mistakes that aren’t too costly.
- Real estate.
One of the oldest methods used is real estate. Learn the trends of your real estate market if you don’t already have a grasp on the area. This is a capital intense method but it doesn’t have to be. Flipping homes is an area where you can build up your investment but it is also very time consuming. Finding the right contractor can help.
- Analyze your income
Probably the most important part to earning more residual income is tracking it. Make an excel spreadsheet and track the money coming in. This may seem like an elementary exercise but it is paramount to discovering what options are working the best for you.
