In my last post, I discussed Wealth Creation and "Assets".  Today, I will be discussing passive or residual income. 

What is passive or residual income?  It's income that comes from assets you own or create that pays you long your initial investment of time or money.  It is really about leverage and multiplying yourself.  Working once and being paid over and over.

A business can produce passive or residual income if you can let it stand on its own and you can create a replicateable system-- a cookie cutter, if you will.  A "cookie cutter" approach is important if you want to grow, because you can't be everywhere (Some people refer to this idea as "scalable").  If you develop a good business model, you want to franchise it . . .

Remember, real wealth is usually built upon passive or residual income.  There are only some many hours in the day that you can be paid for, with passive income, you are leveraging yourself.

Examples of passive or residual income include:

• Artwork-- Paintings or prints (even better)
• Craftsmanship-- Fashion clothing or furniture
• Photographs-- Art or stock
• Videos or movies-- How to's, seminars, or full motion pictures
• Books-- Fiction or non-fiction
• Songs
• Poems
• Music
• Websites
• Information Products
• Advertising space
• Software
• Games-- Board or video
• Sales-- Multi-Level-Marketing (MLM) or financial
• Designs
• Inventions
• Rent-- Real estate
• Royalties
• Dividends or interest-- Stocks and bonds

Next, I will be discussing Creating Income Producing Assets . . .

This post originally appeared on DivorcedDadFrugalDad.com (but has been modified and expanded upon here), here is the link to the original post: Passive or Residual Income.

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What is Defensive Entrepreneurship?
Why Defensive Entrepreneurship?
Who is the Ideal Defensive Entrepreneur?
What is Multipreneuring?