Passive Income Vs Residual Income

In an ideal world the residual income formula toward passive income allows us to earn money while sitting at home twiddling our thumbs.

Passive income vs residual income. Income refers to money a person or business entity receives in exchange for providing a service or when making an investment two types of income. In an online business environment the two terms are used interchangeably. Two types of income are passive and residual income. The difference between residual and passive income depends on the industry in which these terms are being discussed.

Although these terms are often used interchangeably they are fundamentally different. In this environment the terms typically mean a source of income that is automated. Sometimes even several terms that are mistakenly interchanged to the point that the true meaning of each gets lost altogether. An overview income refers to money a person or business entity receives in exchange for providing a service or when making an investment.

Residual income is income you receive after doing initial work or can. It s how the rich get richer. Residual income often we come across terms in regards to doing business online that we are not 100 familiar with. The actual definition of the word residual means money left over after you pay your bills.