Passive income vs. Residual income

[King bell]

A lot of people want to generate passive income, but the big question becomes: What is the difference between passive income and residual income ?

In order to answer this question, it's important to first understand how they differ. Passive income is earned as a result of investment in an asset or multiple assets. This means that passively earned funds come from outside sources . Meanwhile, residual income is generated by supplying goods or services to customers over and over again. In other words, the more you sell your product or service (not just one time) , the more money you make !

Automatic payments are one of the most attractive components of residual income streams . Invoices sent to a customer are processed through invoicing software , and the customer pays them through a variety of methods . The most popular ways are credit card , debit card or electronic check .

 

[Mika]

Passive income and residual income are the income that you are generating at the current time without significant online activities. You can generate passive income and residual income through different activities such as investment, business, product sale, etc. Passive income and residual income both come from something you have done in the past. Interestingly, there is a slight difference between passive income and residual income. When you earn a bonus on your insurance, it is residual income, when you receive pension or retirement funds after retiring from your job, that is residual income. Earning royalties from work or product can be classified both passive income (because you don’t have to do any work at the moment to earn royalties) as well as residual income (because you are earning from something you have done in the past). Since you do not have to work or you can do minimal work to generate income, you can use residual income and passive income interchangeably.