If you are here, you must be looking to build your long-term financial wealth without doing much work. You have come to do the right place! Residual income is a smart way to increase your wealth passively.
Passively means to be able to earn income while doing nothing for a particular income. Before I head into the various ways to build residual income, let us focus on the “What” and the “How”.
What Is Residual Income?
Residual income is excess income or disposable income, which is often calculated monthly. The amount of money left for an individual or family after they have used it for their expenses. In summary, it is the net income after all costs have been paid down.
A residual income portrays a snapshot of your financial capabilities and stability, which helps you get approved for loans, insurance, or credit cards. Residual income portrays to banks and lenders that a borrower can pay back their debt. It is also an important factor in credit scores as that is what lenders often look at before accepting you for a loan.
Residual income is very much alive and is also referred to as passive income in simple terms. Residual income is a smart way to diversify your income streams which helps you not be solely dependent on your standard job or paycheck. The best part is that there is considerably less time or effort required for residual income. That is the plan.
Building Residual Income
A residual income’s main idea is to leverage other people’s time and resources to achieve revenue. Regardless of what type of residual income you can think of, you need to put some effort and hard work in the beginning.
People have built fortunes through residual incomes, helping them build considerable wealth enough to last retirement. Residual income is not a get-rich-quick scheme. It is a way of building your revenue without having to do much.
Types of Residual Income
There are a few different types of residual income that are easy to get started with.
1. Invest In Real Estate
Real estate is a smart way of earning passively without having to do much except buying the property. Your real estate worth increases day by day; however, it depends on where your real estate is located. This is why I have made a four simple step-by-step guide for real estate.
Having a property can also help you earn rent, which is smart to pay off bills like taxes, repairs, or other expenses. You could keep the excess to yourself. There you go, more residual income for you.
2. Put Advertisements On Your Car
By far the smartest way to earn money. All you have to do is drive a certain number of miles every month and earn a ton of money. Websites like Wrapify and StickerRide are some of the few life-changing apps you can try out. Do not require any work except to drive, which I suppose you already do.
3. Sell Your Photos
Does your phone have too many photographs (I have 33,000 what about you? Let me know in the comments below)? Do not delete them.
This might sound crazy, but you could earn some money on them.
Apps like Shutterstock are one of the best places to sell them. There are many apps, but I would prefer Shutterstock personally as it is a platform most businesses and people opt for when looking for pictures. Most people who sell their pictures earn 90% of their income through Shutterstock and is a great way to earn a couple of hundred dollars a month.
4. Create A YouTube Channel
Ever heard of Vloggers? Plus, did you know in a recent survey in high school that more than 70% of children wanted to become YouTubers? Why is that? Well, because there is much money involved in making videos of whichever purpose whatsoever.
As you start acquiring subscribers and views, your Income will keep increases; the key is using keywords and producing content consistently. This way, YouTube surveys will prefer to show your content more to people looking for something similar.
Making videos for YouTube requires minimum effort and provides more than enough residual Income than you can imagine.
5. Build An Online Course
Do you have a skill worth telling people? Is your skill worth Money? Are people willing to pay for your “teaching” services? These are no doubt tough questions to be answered. However, if you have got talent in SEO or saving or budgeting, make an online course to help people.
If you have a blog, decide how to start a blog or something you are interested in teaching people. Websites like Udemy and Alchemy Academy teach and help build courses. It is a smart and easy way to build residual income.
6. Use Affiliate Marketing
Whether you are making videos, having a website or blog affiliates is the best way to make money. If a blogger promotes or mentions a product or a site, they earn a certain percentage of income through the affiliate program’s revenue.
For blogs, you can check out FlexOffers, which offers over 1000s affiliate programs to choose from; if you do not have a blog, start today with Hostgator.
You could opt to buy an existing blog, but you might have to write or stick to a domain name you are not happy with. Start a blog with GoDaddy; it only takes 10 minutes.
7. Write An E-Book Or A Book
Do you have experience in a particular niche? The founder of Millennium Money started his journey as a blogger and sought out to write a book after gaining experience in personal finance. The book is called Financial Freedom.
With Amazon, it has become effortless to publish books, and you can earn around 60% of the income earned through Amazon Kindle Direct. This is a fast way to build a residual income faster regardless of the genre, and you could be earning for years and years on a single book.
8. Sell A Product
Often people sell merchandise that is very much appealing to the younger generation who are used to overspending. Why not start investing in it (funny and not because I shall consider myself as a youngster)?
Having your very own store requires a lot of money and labor you are not looking for. Hence it would help if you started an online shopping business where you can sell through your website or other websites like Amazon or Shopify.
9. Invest Money
Stocks are one of the most common places to invest. Although risky, it is a smart way to generate residual income. You could otherwise choose to purchase high dividend stocks, try peer-to-peer lending, or invest in real estate.
However, you need to have money; however, some apps help you invest some of your money, such as Acorns. It is by far my favorite app which I adore. It helps me save so much money without me even noticing I earn residual income through no sweat.
10. Open A High-Yield Savings Account
This is a preferred option as it does not require much work; nevertheless, it is provided via online baking only. Banks like Axos Bank and CIT bank is your best bet, and they offer high rates which could help you earn high residual income without having to do anything at all.
However, these interest rates are variable and subject to change, and they might go below inflation rates; in that case, the purchasing power of your money will fall.
Bottom Line
I will be honest nothing in life is going to be handed to you just like that. You have to work hard for it, and although these options seem like not much work, you have to put at least some effort into making these things happen.
After applying that little work required, your residual cash will start flowing, and you will keep earning more in the future. Regardless, to secure your future, you have to be good at managing your money.
Are you? Let me know in the comments below.
