Residual Income is another term for recurring income. However, there are three (3) types of income streams that you can generate.
- If you do a one-time job, sale or perform a contract, you get paid once and the income stops there.
- If you do a normal 9 to 5 job, you will continue to get paid as long as you continue to work for your employer—often called a linear income. This is the type of income that the majority of workers “enjoy.” Even if you are a neurosurgeon, lawyer or engineer, you are only paid as long as you continue working. You stop working and the bank account dwindles.
- The third type of income is the recurring income where you are paid even after you have stopped working. For example, you wrote a book and as long as your book continues to sell, you will continue to receive royalty income for a work done once.