The term passive residual income is actually a misnomer of sorts. The fact is, to have a residual income, you first have to have a regular income that supercedes your regular expenses. Only then can you save, invest or put that ‘extra’ into a bsuiness of your own that will, over time, become the passive income that you’re looking for.
Here are 2 tips:
1. If you have a salary income, keep some money aside from each paycheck and put it into an equity mutual fund. Over time, this will start generating compounded returns, which will become your additional source of income. People say you get better returns from stock markets, which may be true. But then, unless you know what you’re doing, you’re safer with a mutual fund as it’s a common pool of investor money and not just your own.
2. Set aside weekends to learn a skill or hobby and develop it over a few weeks into a pliable vocation. Look at your local market. Identify some niche that isn’t being serviced and analyze your USP in it. Most people have unexplored skills that with a little effort can easily be turned into a part-time business from home. This is definitely a residual income source for the medium to long term.