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Residual Income: Top 5 Best Residual Income Jobs and Opportunities?

Residual income- The best 5 residual income jobs-

What is Residual Income?

It is also called recurring or passive income mainly because you can make money work for you while asleep.

Residual income streams require a lot of nurturing in the beginning and a relatively high amount of initial capital but after some time they stabilize and maintain themselves.

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Working smart is the idea behind residual income instead of working hard. Industriousness is also key to be successful in this line of investment.

Residual income is the amount of cash on hand after settling all debts, including a mortgage, minus all the expenses.

This exercise is done monthly. In a company setting residual income can be used to determine the amount of income generated above the minimum return requirement.

This assessment is carried out by the company’s management team. Residual income is a key determinant while securing a loan because the credit firm assesses the amount of money left (residual income) after an individual or a company has settled all the debts.

In simple terms, Residual income= Net operating income – (minus) cost of operating assets and debt payments. Passive income streams accelerate personal earnings and financial goals.

In this video, you can learn more about residual income and where to invest your money.

 

Smart ways to make residual income streams.

1.Renting out a spare room

Renting of unused space is a wise way to earn passive income. A friend or family member would be an ideal option since you are in a better position to get along pretty well. Living in a two-bedroom house and only using one

Living in a two-bedroom house and only using one call for creativity in terms of getting extra cash. Opting to rent that bedroom is a move that will ensure passive income flows in your account all year round.

2.High yielding savings account

Saving accounts are the safest investments ever invented. The interest earned over a period of time qualifies as residual income.

Nowadays it is very easy to get savings account rates that are very good without locking in your money for a number of years.

You can learn more in-depth about high yielding savings account from the following video:

3.Peer to Peer Lending

This is the practice of making money available to borrowers who don’t qualify for bank or traditional loans.

The lender is in a position to select which borrowers to lend money and how to spread the investment so as to reduce the risk.

You can learn more pros and cons about peer to peer lending from the following video:

4.Annuities

This is an insurance product that is paid for but provides residual income throughout a lifetime in form of payments made monthly (monthly passive income). Talking to a trusted financial advisor is of paramount importance because the terms with annuities vary and might get one into excessive risk if not well thought of.

Talking to a trusted financial advisor is of paramount importance because the terms with annuities vary and might get one into excessive risk if not well thought of.

5.Dividend Stocks.

Plenty of research is needed to find the best stocks and then make a move by investing a significant amount of money so as to earn relatively large dividend checks. Over a period

Over a period of time, repeated money investment on dividend stock can make one realize a huge amount of income (residual income).

In this video you can find the top 10 dividend stocks for 2018:

WHAT IS PASSIVE RESIDUAL INCOME?

Income has more to do with any money received particularly on a regular or uneven basis. This is either daily, weekly, monthly or annually for work done or through investments on account of direct, indirect or no effort.

One should purpose to generate either a Passive income or a Residual income as they are used often by banks to
determine if one can be given a mortgage or not. Though, this is not the main financial goal. Any earnings are affected by GDP value, inflation, and exchange rates.

In the school of management, you can use profits from assets, net income, and average operational assets to measure the performance of any unit in a business.

Video Overview: Passive and Residual Income: 6 Key Strategies You Need to Know 

Residual Income vs Passive Income

When an individual is able to earn some income after all expenses, debts e.g. short term or long term debts have been settled, then we refer to it as residual income. Also, passive income has to do with money earned when an individual makes indirect no or little effort to an enterprise that is generating the income.

In fact, passive income is the money you get with little or totally no efforts in an entrepreneurial activity you have invested in at any given time. Hence to maintain that regular cash flow you need little or no effort on your part. In short, it’s either money at work for you or people laboring to bring profit.

Residual income has to do with monthly earnings while passive income may not necessarily be got every month. To get the value of residual income, you take the operating income less the total value of the cost of capital when it’s multiplied by operating assets.

For example, you if your salary is USD 12,450 per month with 20% income tax, a mortgage deduction of 15% and investment of 2%, then your take home check. The remainder value is your residual check or your individual residual income.

Video Overview: RESIDUAL INCOME VS. Active INCOME…and WHY it is so important?

As shown in US service guide, examples of passive income are profits from rental property investing, annual dividends from shares or company stock. In both of this case, an investor little effort that may or may not be ongoing or needed is to indicate.

In the first scenario, the investor may buy or construct the property to rent or sale. Yet still, they can hire a company to do for them the work. In the latter case, the investor has to purchase the stock to earn the passive income. The investor may even decide to contract a forex trader for the work.

Moreover, major examples of passive income are earnings from patent royalties, investing in a loaning club, selling products online, cash-back rewards for shopping or using credit cards, earnings per clicks on your websites, royalties paid on intellectual property e.g. software, music, books among others, interest income from pension scheme or bank accounts, rental income, and dividends from stocks, coinages, gold usually referred to us portfolio income.

You can easily estimate the rate of return on your invested assets by adjusting income with the cost of capital. It’s important to note that residual income is also a type of calculation that estimates the value of money available having paid all their monthly bills considered an important factor in estimating one’s monthly contribution towards the mortgage.

Best residual income jobs and opportunities

1.Phone sales (residual income) reputation management.

The monthly residual commission is obtained on top of a commission for sales done. The employee can work remotely and the schedule is flexible.

2.Outside sales representative

An upfront commission is offered for equipment sold or rented and the residual income is paid for the entire life as long as the customer relationship is maintained.

3.Financial services

Reasonable commissions and bonuses including paid vacations and passive income are guaranteed.

4.Field marketing representative

Generous commission, flexible schedule, bonuses and residual income paid timely.

5.Executive sales consultant

Residual income for renewals will be earned as the employee creates a positive and lasting relationship with the client.

Video Overview: Top 3 Ways to Create Passive Income – Best Residual Income Ideas so You Can QUIT YOUR JOB

Conclusion

Building a residual income stream is not a walk in the park. It needs creativity, dedication, and taking of necessary risks. Initial sweat is compulsory to have a successful passive income investment. To make a significant amount of money under residual income investment one needs to put a considerable amount of money into interest producing investments. Residual incomes

To make a significant amount of money under residual income investment one needs to put a considerable amount of money into interest producing investments. Residual incomes

Residual incomes allow one to utilize his time well and focus on other things in life such as hobbies instead of working every time. Extended vacations and sick days are not a big blow to someone who has residual income. Money is earned no matter the

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Extended vacations and sick days are not a big blow to someone who has residual income. Money is earned no matter the situation, unlike a linear income where you have to be tied down to the workstation.

Related Posts: 30 Amazing Ways To Earn Money From Home

About Vlad

Vlad is a Founder of TruePassiveIncomeIdeas and Partner at CloudHostSpace. Over the past 10 years, I have enjoyed a diverse career as an investor and entrepreneur and business executive.

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