Residual Income Opportunity Blog

You want to start to earn residual income and set up some opportunities but first you need to even understand the definition of this word. Most of us hear that term or we also hear the term passive income floating around in the money conversation circles. Well before you start to make anything or talk about it you need to have an understanding of what the word means so you know how to go about making it!

There is one big mix up that many people have when they think of the terms residual and passive income. Let’s get one thing straight right off the bat. Working from the Internet or from your home does not automatically mean that you are making passive cash streams. It means you are working at home and while you do have more freedom you still need to work all the time for your money to keep coming in correct?

If you want to understand the true definition of residual or passive then think about assets that produce money daily, monthly, yearly etc without you doing something specific for at that moment to get it.

Let me give you a few examples. The interest you get on your money in a bank or bond is passive. Once you put the money in any of the interest you receive from that cash you actually have done nothing for except the initial action. Another great example would be a website that you set up Adsense on. Once you put in lots of initial work and the site starts ranking well you will most likely be getting money coming in daily with no or very little maintenance.

So when you’re evaluating whether a residual income opportunity is really that then think about this one question. Will I earn money even when I’m not working. Remember many opportunities require initial work before they will turn into something truly passive.  That is the true definition of this word.