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Residual income is income

from work done one time.

 
 
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Residual income is also known as Passive or Recurring income and is different from a regular wage that's based on the number of hours invested in a particular job.

Passive income is an income received on a regular basis, with little effort required to maintain it.  Recurring income is compensation received on a reoccurring schedule for work, after completing the work,   This type of income stream allows a person to continue receiving payments for the same work done one time in the past, on a continual basis.  This is also known as residual income.

Residual income continues to generate itself even after completing the work.  Such income helps you earn more while working less, as it continues to pay recurrently for work done once.




The Difference between Earning a Salary and Residual Income.

When you have a job earning a salary there is a 1 to 1 ratio between the number of hour’s work you clock in and the dollars you earn.
 
  • You would stop generating an income when you stopped working.  (No Work No Pay)
     

  • You earn more money by getting a promotion or working longer hours.
     

  • For both of these options, there is an upper limit that is impossible to be scaled. 


To earn a residual income, you do need to accrue hours of serious work.  The rewards are greater and can continue for your lifetime, even after you stop working.  
 
Compared to the time invested, your returns are higher and you continue to earn a recurring or residual income on your initial investment.



 
Sources of Residual Income
Here are examples of work that can provide you a residual income.


 
  • Multilevel Marketing, Network Marketing.
     

  • Royalties can be earned indefinitely if you write and publish a book.
     

  • Alternatively, you can earn Internet revenue by advertising on the internet.  

    Marketing on the Internet requires very little investment of both money and time and once established, can generate plenty of residual income.

     

  • Owning a property and renting it out can also provide you with residual income as can dividends earned from investing in stocks and securities.


     

How to Make Residual Money Work for You.

Most people think that there is no work involved in generating residual income.  This is not true.  As you begin to develop and strategize your business, it's necessary to work very smart and hard to create a residual recurring cash flow.

 
  • You’ll have to continue working hard, even after you establish the business program, to ensure that you get results you desire.
     

  • You as the owner of your business, can only blame yourself if anything goes wrong.
     

  • You would be cheating yourself and nobody else if you refuse to work.
     

  • It is essential that the team you create and work with, provides both talent and hard work.
     

  • Make sure that the mode of generating income is best suited to your temperament.
     

  • Know how much money you are prepared to invest.
     

  • When your residual income mode of money making is in place, you reap the benefits geometrically, exponentially and
     

  • This reaping of benefits can continue indefinitely.
     

Many people believe that that you can earn a residual income without working; do not sign up for that class.
 


Let Us Talk About You Increasing Your Earnings. 
(These are statements you repeat; your affirmations.)
 

  • I need to work smart not hard.
 
  • I must build my team fast and wide, in groups of tens, Why?  because it’s easier to multiply exponentially.
 
  • I am giving support to my team slow and deep.
 
  • I am leading my team.
 
  • My team does do what I do, because what I say goes into one ear and out the other ear.
 
  • I Inform, Edify, Educate, encourage Discipline.
 
  • This supports the progress of my organization. 
 
  • When “The Student” is ready the teacher appears; therefore I go where the teacher is needed.


My Chief aim is to help others get what they want, so that I get what I deserve.  This is how I build and earn residual income into perpetuity.

 

Income Categories

  • The American Internal Revenue Service (IRS) categorizes income into three broad types, active (earned) income, passive income and portfolio income.
     

  • The IRS defines passive income as only coming from two sources: rental activity or "trade or business activities in which you do not materially participate.” 

    Other financial and government institutions also recognize passive income as an income obtained because of capital growth or in relation to negative gearing.  Passive income is usually taxable.

     

 
Some examples of passive income are;
  • Earnings from a business that does not require direct involvement from the owner or merchant;
     

  • Rent from property;
     

  • Royalties from publishing a book or from licensing a patent or other form of intellectual property, such as computer software product;
     

  • Earnings from internet advertisements on websites;
     

  • Dividend and interest income from owning securities, such as stocks and bonds, is usually referred to as portfolio income, which may or may not be considered a form of passive income. In the United States, portfolio income is considered a different type of income than passive income;
     

Pensions.
 

  • The IRS has a specific definition of passive income that excludes some of the incomes listed above. Royalties, for example, are, according to the IRS Service guide, generally non-passive in nature. Additionally, interest, dividends, annuities, and gains from stocks and bonds, lottery winnings, salaries, wages, commissions, retirement income, guaranteed payments for services are considered by the IRS to be non-passive.

     

  

Why focus on creating residual income?
 

Forbes Magazine released its list of highest earning celebrities for 2014.  Here is a list of the Richest Dead Celebrities in 2014.

Our fascination with celebrity often stretches beyond the grave.  Some of the most popular performers of our time are, sadly, no longer with us. 




Who topped the Forbes list of richest dead
celebrities?

 
Michael Jackson earns $140 million tops Forbes list of highest earning dead celebrities.  Five years after his death, the King of Pop, Michael Jackson, still manages to rule to roost. 

With an annual fortune, $140 million in2013-2014, Forbes has ranked the  "Black or White" star as the highest earning dead celebrity.

The list came out on Wednesday, October 15, 2014 and created a buzz across the globe as Jackson not only topped the list, but also out ran none other than Elvis Presley.

With an estimated fortune of $55 million, the Suspicious Minds crooner who died in 1977 occupies the second spot on the list.


1. Jackson died in 2009, but left behind a mammoth legacy that is still raking in millions of dollars. His second album post his death, Xscape, hit No.2 on the pop charts.  Apart from that, the music icon also made an appearance as a holograph at the Billboard Music Awards.

2. Cirque du Soleil shows 'Immortal' and 'One' also helped the star’s empire earn an impressive fortune.

3. Famed cartoonist, creative genius  and the man behind the Peanuts comic strip, Charles Schulz, rounded up the top three; with earnings of $40 million.
 
Michael Jackson’s comic strip, converted into 3-D, is all set to hit the theaters in November 2015.
 
4. Hollywood siren Elizabeth Taylor; her earnings in 2013-2014 are pegged at $25 million. Her merchandise properties like best-selling signature perfumes etc have managed to keep the money flowing in.
 
5. Reggae’s most remembered musician Bob Marley followed thanks to a bevy of his merchandise being sold in the market, bags, t-shirts, flavored drinks and much more.


 

Here are the top 13 dead celebrities who
earned serious cash in a combined $363.5
million in earnings.

 
13. James Dean: $ 7 million
9. Bettie Page: $9 million (Four-way tie)
9. Steve McQueen: $9 million (Four-way tie)
9. Bruce Lee: $9 million (Four-way tie)
9. Theodor Geisel: $9 million (Four-way tie).
8. Albert Einstein: $11 million
7. John Lennon: $12 million
6. Marilyn Monroe: $17 million
5. Bob Marley: $20 million
4. Elizabeth Taylor: $25 million
3. Charles Schulz: $40 million
2. Elvis Presley: $55 million
1. Michael Jackson: $140 million


Forbes Magazine compiled the list by talking to estate managers, lawyers and licensors and analyzing estimated posthumous earnings between October 2013-14.
 
As it turns out, being dead is lucrative.  Residual income continues even after death and is bequeath to your heirs.


Investopedia explains 'Residual Income' as follows:
 
The amount of income that an individual has after all personal debts, including the mortgage, have been paid.  This calculation is on a monthly basis, after the monthly bills and debts are paid.  In addition, when a mortgage is paid off in its entirety, the former monthly mortgage payments that individual paid becomes residual income.
 


Residual income is often an important component of securing a loan. The loaning institution usually assesses the amount of residual income an individual has left after paying off other debts each month.
 
If the individual requesting the loan has sufficient residual income to take on additional debt, the loaning institution will be more likely to grant the loan because having an adequate amount of residual income will ensure that the borrower has sufficient funds to make the loan payment each month.

 

Conclusion: Residual income generates from work done in the past.  It is also money left over after paying all monthly bills.
 
 

Investopedia is an Internet site devoted to investing education based in Edmonton in Alberta Canada started by Cory Janssen and Cory Wagner in June 1999.  In 2007, the site was purchased by U.S. publishing company Forbes which sold it to ValueClick in 2010 for $42 million.
 
Investopedia is a resource for investing education, personal finance, market analysis and free trading simulators. With a comprehensive financial dictionary, exam preparation materials, and active trading strategies, it is a leading destination for investors.
 
Investopedia began as a financial dictionary, separating itself from other dictionaries by offering the "Investopedia Definitions" featuring a plain English interpretation of hard to understand terms and concepts.

The site now averages over 11 Million Unique Visitors and 40 Million page views a month and is home to over 6,300 articles, 13,000 dictionary entries, and 750 pages of tutorials covering all aspects of finance and investing.


 
 
Glossary
 
The Internal Revenue Service (IRS) is the revenue service of the United States federal government.  The government agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue.
 
The IRS is responsible for collecting taxes and the administration of the Internal Revenue Code.
 
The first income tax was assessed in 1862 to raise funds for the American Civil War, with a rate of 3%. Today the IRS collects over $2.4 trillion each tax year from around 234 million tax returns.

 
Non passive income.
Royalties, for example, are, according to the IRS Service guide, generally non passive in nature.
 
Additionally, interest, dividends, annuities and gains from stocks and bonds, lottery winnings, salaries, wages, commissions, retirement income, guaranteed payments for services are non-passive.




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