Saturday, October 16, 2021
HomeFinancial EducationTop 13 Ideas to Build Residual Income Easily

Top 13 Ideas to Build Residual Income Easily

What do you mean by Residual Income?

Residual incomes are the sum of money that is received on a regular basis after the completion of the income-producing work.

To get a residual income you don’t have to do regular work like as a salaried person but here you are liable to get your income from your initial investment that you have made for the product or services.

In a residual income, you are supposed to get royalties, rental, or real estate income, it all includes income from your sale for which you have not to do work regularly. Such as the sale of your music, books, or your art.

Another best example of residual income is a house or building. As once you get the building or house ready then you will get paid for it regularly if you put it on rent.

One of the best ideas for doing investment is to invest in residual income. It will provide the best increment in your net worth and helps you to take benefit from your investment for a long time.

Simple Ideas to invest in residual income

earn passive income

Now, you were just wondering how to invest in a residual income. You don’t have to be worried about it as I have bought some of the best ideas from which you will be able to invest in residual income.

  • Try to invest in stocks & bonds: The best way to earn passive income is by investing. So, you must have to be comfortable with the word “investing”. In the market, many companies are ready to help you in doing investment, and also you are allowed to set your risk.
    There are online platforms that allow you to open broker accounts. And when you get your broker account open then, you will be able to invest and purchase individual stocks, bonds, mutual funds, and ETFs. 
  • Rental Properties: Rental Properties is a fantastic way to bring your residual income as a monthly income. It comes under passive income.
    Nowadays it has been more simple to invest in rental properties than ever before. Because there are several choices to invest in rental properties of your wish.
    You can also do all these things using online platforms. There is also the option to be a limited partner with commercial properties or you also have an option to buy your own home and become a landlord.
    You can earn residual income with the help of rental properties by investing in a single-family house, investing in a larger development, investing in farmlands, or for accredited investors. 
  • Invest in high yield saving accounts: By hearing the word “saving account” you might be thinking that if you put all your money in a savings account then what you get left to spend.
    Here, you need to understand that you have to save money for a short period in a savings account. You are just allowed to use its fund as an emergency fund.
    There are some alternatives to saving accounts such as crypto saving accounts.

    Crypto Saving Account: Over the last few years, the crypto saving account has been very famous. As it is providing a very high rate of return.
    But you must have to be clear that it is not the exact savings account where you can put your money and be relaxed.
    A Crypto saving account is a little risky to invest in. So, I will suggest you read the proper guide to cryptocurrency before investing in it. 
  • Invest in retirement accounts: Everybody wants to get retirement after a certain period. But does everybody have their retirement plan?
    At the time of retirement, you always need a sum of money from which you can enjoy your life. And to do so, you must have to get residual income.
    To make residual income at your retirement you must have to invest in a retirement account from today.
    If you invest in a retirement account you could also be able to save your income tax. 
  • Start writing a blog: If you want to do your work from home and build residual income. Then you must go with writing blogs. If you can give your full time to a blogging career then, you will be able to make enough money.
    It is not an expensive deal, you can just start your blogging career with the expenses of less than $10 monthly.
    But always keep in mind that to be a successful blogger is not as easy as you think. You have to give your full time to this work and have to make a lot of effort then only you will get success.
    When you will be a successful blogger then it will be very simple for you to do affiliate marketing. And you will also be able to residue your income from affiliate marketing. 
  • Write a book or eBook: It is a classic as well as the traditional method to earn residual income. The thing that you have to do is just write a book of your interest then find the place to publish it.

    And if you are writing an eBook then you will be able to publish your eBook on an online reading platform. Such as Amazon’s Kindle.
    To do a self-publication of a book you need to write a book then, you must have to do required edits on it before publication.

    When you have successfully published your article then you have to do upfront marketing so a maximum number of customers get to know about your book or eBook. 
  • Start making online courses on different niches: Are you a type of person who is an expert in any field or has a piece of specialized knowledge about your subject matter? Is your knowledge or skills being beneficial for others?
    If yes, then you may have to create an online course.
    Online courses are very popular nowadays and it is a fantastic way to roll your residual income.
    You simply must make a course for students and record it. Then you just put your recorded course on any online course providing platform. 
  • Invest in Real Estate Investment Trust (REIT): Do you want to invest in real estate and want to take advantage through (RETI) Real Estate Investment Trust?
    These are such an investment vehicle that gives you a very high return as they hold the property for some period and get it sold at a high price. You can start investing in Real Estate with $500 only.  
  • Selling Stock Photos: In a single day, you may visit many websites, blogs, and maybe magazines too. But have you ever wondered where those websites get their photos?
    Those photos are generally purchased from stock photos websites. And if you are the type of person who loves to do photography then I will suggest you open your stock photos websites or you may submit your photos to the stock photos websites and earn a commission whenever your photo will be used by any websites, apps, or magazines.
  • Licencing Music: If you are a music lover then you may know that every music created by the artist is licensed so no one will be able to use their music for income without getting permission from the license holder of that music.
    If you are a music maker then you can be able to earn royalty from your music if anyone wants to use it. Most of the time music is licensed for YouTube Videos, Commercials, and much more.
    Try to make a piece of music that people want to listen to and put it on YouTube and after doing this your work is completed. Now if your music creates demand in public then they will pay for it. 
  • Build an App: If you are the owner of a laptop, smartphone, or tablet then I am sure that you have downloaded several apps in your gadget. But have you ever thought of making your app?
    If you got the relevant skill of making an app then with the help of the app you can start getting your residual income.
    The thing that you have to do is to list your app on the App Store or Play Store or both and let the app work for you.
    You need not worry by thinking “what happens if you don’t have relevant skills for app development?” In this case, you can simply hire an app developer and make your work done. 
  • Open an Online Store: I am pretty sure, just like me you are also fond of doing shopping through the online store. But what happens if you get an opportunity to earn from that online store! Doesn’t that sound very attractive?
    The thing that you must do is just open your online shop and put all the stuff on your online store that you want to sell on that.

    Shopify is the platform from which you can easily open your online store and start to earn residual income. On this platform, you can be able to use the best design and themes for your online store.
    Not only this but you are also allowed to custom your domain name. And it will help you a lot in introducing yourself to your customer. 
  • Rent Out your Car: It is quite similar to house rent. Because as you are the owner of the house you can rent it in the same way if you are the owner of a car then you will be able to give it on rent and earn residual income.

Conclusion:

If you want to earn money regularly, then you have to choose residual income for yourself. As residual income is the income that you receive by investing your time or money or it may be both.
In this, once you have done the investment you will suppose to earn your income repeatedly. It is continuous.

Some of the ideas to invest in residual income are an investment in stocks and bonds, retirement accounts, high yield saving accounts, writing a book, peer-to-peer lending, licensing music, selling stock photos, network marketing, renting out your car, etc.
But whenever you want to place in the residual income you have to research your interest based things.

Read More: Top 9 Income Producing Assets to Grow Your Wealth

Frequently Asked Questions (FAQ)

What is Residual Income?

Residual Incomes in a corporate sector describe as the total operating profit left after deducting all the expenses that are used to generate revenues.
In simple words, residual income is the continuous income that you receive regularly after doing the income-producing work.

What are the examples of Residual Income?

Some of the best examples of residual incomes are real estate income, royalties, interest and dividend income, sales of consumer goods such as music, eBooks, books, digital art, painting, and so on.

How many types of residual incomes are there?

Mainly there are three types of residual incomes and they are:

  • Equity Valuation
  • Corporate Finance
  • Personal Finance

How to calculate Residual Income?

To calculate the residual income you have to multiply the average of operating assets with the Required Rate of Return. When you get the product of both then, you have to subtract it from Controllable Margin.
Here is the formula is given below:

Residual Income = Controllable Margin – (Average of Operating Assets * Required Rate of Return)

OR

Residual Income = Net Income – Equity Charge

What is the difference between Residual Income and Passive Income?

Most people get confused about Residual Income and Passive Income but there is a little difference in both of these terms. But both are the categories of income.
Passive Incomes are the type of income that is earned by the enterprise and to earn this income an individual has to make a little effort.

On another hand, Residual Income is not income. But it is the total of money that is earned by the individual from their past work completed. It is not a salaried income. 

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular