First, let’s break down what residual income really means. According to Investopedia, residual income is money that keeps flowing after you’ve completed an initial investment of time and resources. Think artist royalties, rental income, interest income, and dividend payments.
When people hear the term “residual income,” they often imagine the glamour of receiving a paycheck for a song they wrote years ago. However, for most of us, being an artist or owning property may not be feasible. Instead, think about rental income, interest income, and dividends, especially within the stock market. In this arena, you can own stocks and even “rent” them out via covered calls. With at least a hundred shares, you can generate income every 30 days without needing a significant initial investment that’s often required in real estate.
