Residual Income Ideas


Residual Income Ideas that may allow you certain freedoms that you may not currently have.

Imagine this if you will, you wake up comfortably in your bed on a Monday morning, you didn’t wake up to a noisy alarm, or any other external sources. You walk into your kitchen to make a cup of coffee and you realize it’s 11am, but you’re not worried about the time, because you’ve already retired due to your residual income that you’ve built up with a little hard work and motivation. All this because you made your money start working for you instead of you working for it.

Wouldn’t that be nice? I would certainly hope so!

Perhaps your dreams extend further then just being retired, and maybe you want to take up a hobby, travel the world, or start charity work. The only roadblock from getting to this point in your life is YOU and your level of motivation.

Enough about dreams and scenarios for now. Let’s talk about the topic here, residual income.

What is residual income? Well simply put it is money that you make on a weekly, monthly, quarterly, or yearly on some sort of investment. It is usually money that requires little to no work on your end to receive. Don’t get me wrong, this isn’t free money, you will have to put in the work in the begging to get the ball rolling.

Some examples of ways to begin earning residual income, and I’ll give more detail on each:

  • Renting out real estate (monthly or AirBnb)
  • Stocks and Bonds
  • Business Investments
  • Peer to Peer Lending
  • Savings Accounts
  • Royalties from music
  • Write a book
  • Make YouTube videos
  • Create a phone or computer application
  • Patent an invention
  • 401k
  • Purchase an Annuity
  • Create a successful business
  • Blog
  • Create a training course

Renting out Real Estate

If you already own property then I hope you aren’t letting sit there unoccupied, because if you are you’re throwing away money! If you’re not sure how to get started with rentals then it may behoove you to look into possibly renting through a company like AirBnb.

AirBnb I have heard many good things about their services. Many of my close friends have used them and been extremely delighted with them.

Don’t own property?

It can be scary to get started in real estate especially if you don’t know what you are doing when you get started. Some people jump into real estate blind and they end up losing money.

Make sure you do your research before you jump into real estate. If you have any real estate agent friends you may want to talk to them, and pick up a few things about the industry.

If you don’t feel confident with getting into the real estate industry by yourself there are investment organizations that you can invest through them, and you won’t have to purchase, maintain, or manage the property yourself. Take in mind if you go this route the return on your investment will be smaller.

Companies such as Fundrise will allow you to invest in real estate for a minimum $500 investment.

You could always find an agent and start looking at properties. They are more then happy to show them to you if you are in the market to purchase.

You will have to decide whether you want to own commercial or residential properties. Do you have the capital to get started purchasing properties? If not you may have to find a partner or investors to get started.

If you need to find investors or a partner you will likely have to create a good business plan to show to your potential partners. You will also likely want to create a business as either an LLC., C-Corp, or S-Corp and if you would like more information about that you can find it here.

Flipping a property may be the key to getting it rented for short or long term plus it may add to the homes value and curb appeal. Make sure you purchase the homeowners’ insurance, because the last thing that you want is your property costing more then it’s worth.

Afraid to deal with maintenance on said property?

You can search for property management companies that will take care of hiring contractors to maintain the property, but they usually charge a base monthly fee plus the cost of repairs. In the end you may end up losing money on your property investment.

Don’t want to deal with tenants?

A property management company would give you that gap from your tenants, but again they are going to cost you monthly. That property management company will likely handle any listings or viewings to get the house rented out.

Stocks and Bonds

I’m sure you have heard before that there is huge chance of losing it all in the stock market, and whoever you heard that from wouldn’t be wrong. However, there is a chance to make it big through buying and selling stocks, or owning company or government bonds.

My first bit of advice if you are going to get into trading stocks is speak with a financial adviser. Once you have done that you may feel a bit more comfortable buying and selling stock.

There are safe’ish programs that you can invest your money in like mutual funds, but the return on mutual funds differs depending on what that fund is invested in at the time. You will want to speak with an investment broker if this seems like a direction you may want to go.

Perhaps you already know a few things about trading stocks, then you have a leg up on many others.

Bonds are issued by companies or the government in return for a loan of a set dollar amount, and they payout the loaned about plus interest at the end of the bond term.

Government bonds seem to be one of the safest things that you can invest in, but they take so very long to mature and the return may not be worth the wait. Government bonds also don’t tend to pay out dividends and have a set time frame.

Company bonds, not quite as safe because the company could go bankrupt, but they often offer dividends. Based on the company the dividends will differ in their rate, and in some cases they may not even offer dividends. The bond will pay out after a certain period.

Business Investments

If you are business savvy then getting into business investments may be a safe way for you to invest. Some investments are going to be safer then others obviously.

Be very careful that you don’t invest without knowing everything. Partnerships can fall through overnight and leave you with nothing. Pick your business partners carefully, because your investment may count on it.

I am speaking from personal experience. You will also want to make sure that you get everything in writing to avoid any situations down the road.

If you aren’t sure what to invest in then perhaps you could try an investment platform such as Worthy; although, the rate of return will be lower resembling Fundrise but for businesses instead of real estate.

Peer to Peer Lending

Peer to peer lending is very much what it sounds like. You invest in a lending company that makes private and business loans like Mintos.

You invest your money as you see fit and receive a percentage return on your investment. The amount of return is based on what program you chose with them.

They give you the ability to invest in specific loans or you can set the account to auto invest in the loans for you. If you chose to invest in specific loans on your own you are given 3 levels of loans you can invest in. The levels are rated low risk medium risk, and high risk. As you can imagine you will receive a higher interest rate for the higher the risk level that you chose to invest in.

You are also given the ability to fully fund a loan or just a portion of the loan, and you can diversify your investments throughout.

You can withdraw at anytime and it takes up to 10 business days to receive your payout depending on the company.

Savings Accounts

Pretty straight forward when it comes to savings accounts. You deposit X amount and receive a .25% to .80% annual percentage yield (APY). These days even some checking accounts offer returns on the amount of money that you keep in them.

Do some shopping around before opening some savings accounts, because some of them offer amenities such as a sign on bonus. CIT bank offers as much as a 2.15% APY, but requires a minimum of a $25,000 balance.

Some banks will offer a sign on bonus in the form of cash between $50 and $300+ just for opening a savings account with their bank. Most will require that you keep that particular account open for 60 to 90 days before you will receive the bonus, or they will require you to maintain a specific balance for 60 to 90 days.

401k is another example of a savings account of sorts, and the difference between it and a traditional saving account is you take massive tax penalties for early withdraw. You can however barrow against your 401k, but you have to pay back the amount to the 401k as though it were a loan.


I’m going to collectively cover royalties whether it comes from a book, music you’ve produced or created, videos, applications, or inventions.

If you have a creative mind or know more about something then most others you can put it in words for print or electronic publication. You could also do educational videos about what you’re experienced at.

It is relatively easy to get yourself published in this day and age. With the ability to self publish your writings as an electronic publication so your readers can pay and download your writings to their tablet, phone, or computer.

The same really goes for music too, as you can self publish your music to Google, Spotify, or ITunes. I am not saying that it is easy to create music by any means, but you don’t necessarily need a record label to get started anymore.

Now you have the ability to show your talents whatever they are through social networks such as Facebook, YouTube, TikTok, Snapchat, and others.

Applications have become much easier to create as you no longer have to write 10s of thousands of lines of code to build one from scratch. Now they offer different software that you can use to create applications. Than you can market your applications too Google Play or the Apple App store.

Maybe you’ve had an idea lingering in your head for years of something that would help solve a problem for its consumers. If you can implement that idea into a prototype you may find investors somewhere to get your product off the ground. Much like you can witness by watching Shark Tank that airs on ABC TV.

With any of these options if you can promote your product or service to consumers, and they continue to purchase your already produced item, then you are receiving royalties. In most of the above scenarios those royalties will continue to payout as long as your product is something that continues to be in demand by consumers.

As an example, you develop a video and post that video to your YouTube account if that video becomes popular enough YouTube may decide to pay you some amount for every 100,000 views.

Another example, you develop an application for phones that sells to consumers for $1.99 to play your video game, and has pop up advertisements that earn you money every time they click through the link.


Annuities are one trick that lotteries and major companies have been using for years to payout the winnings on a lottery or contest of some sort. The great thing about annuities is they payout over time, and do not payout in a lump sum.

The bad thing about annuities is they don’t pay out in a lump sum.

The way annuities work is you will purchase an annuity for $300,000 at a 3.15% Annual Growth Rate and the payout over the course of 20 years will pay you $1,679.67 a month. Total interest earned over the course of the annuity is $103,120.46.

Total value over the life of the annuity is $403,120.46 which is why prize payouts offer a lump sum or annuity, and if you take the lump sum option then it will be less then the full prize payout.

There are several sites out there that will allow you to plug in your own numbers into their calculator to find the amount you’re willing to invest.

Create a Successful Business, Blog, or Training Course

I know what you’re thinking, easier said then done buddy, well in that thought you are absolutely right. It may not be easy to start a successful business, but it still may be worth the try for the sake of financial stability.

Odds are you aren’t going to create the next Walmart, Google, or McDonalds, but how do you know if you don’t give it a try, stranger things have happened. Yeah, your odds may be about equivalent to winning the lottery of starting a business that successful. Sorry.

If you don’t dream big for yourself, who will! Do you have an idea for a business? If you do maybe now is the time to start planning that business, and if you need advice or help writing a business plan to try to recruit partners or investors you can check out my blog about business plans.

Businesses don’t have to be super complicated to get started, all you have to do is pick something that you are passionate about. If you can’t think of something you are passionate about, then maybe you can aim for something that you are good at. Again, don’t over complicate it.

Everyday people are starting small business, and some of them are even from home, so don’t let location stand in your way.

You can read about my 11 legitimate work from home ideas, or maybe you’re interested in Affiliate Marketing.

If you would like to get into Affiliate Marketing, then you may be interested in Wealthy Affiliate and you can read my review on them here.

Today it is common for people to have personal blogs, but what about starting a business oriented blog similar to this one? It isn’t that difficult to create a basic website and just write till your heart is content. The more you write the more you engage your audience.

With blogs, the question is who is your targeted audience? Are you catering to people of a certain region, nationality, religion, or other? Don’t worry these are relatively easy to answer by just deciding what you want to write about. They call it a niche site.

A niche is anything that you can research or feel passionate enough about to continue writing about. The experts say that you should try to update your blog on a daily basis as it will allow your readers to build more trust in you as a writer.

If you want to go the training course route you can easily get you training electronically published through various companies. You could easily set up a site if you are offering training by video as well for teaching things like yoga, aerobics, or other type of training that your consumer doesn’t have to be onsite for.

If you want to find out some information on web hosting or perhaps you are looking to learn how to build a website you can check out either of my blogs below.

Web Hosting

Web Builder

Summing it all up

I have thrown a lot of information at you in this one, and I hope I didn’t overwhelm you. There is a ton more information out there about each of these topics, and I hope by reading this that you got a good few ideas on ways to start saving for your future.

As always if you have any questions, comments, or concerns please feel free to comment below or send me an email. I try to respond to emails within one business day.

All of my best to you and yours,




*Disclaimer – I am not a certified Financial Adviser, investment Broker, Accountant, nor am I an Attorney, So any advice given in my blogs is solely based on my opinions.*

**Gaining my Financial Freedom is not associated nor does Gaining my Financial Freedom speak for Facebook, Google, Walmart, McDonalds, Spotify, ITunes, Google Play, CIT Bank, Mintos, Worthy, Snapchat or Fundrise.


1 thought on “Residual Income Ideas

  1. Residual income is something that is so important but unfortunately, very few people know about it.
    I like the saying “You have residual bills, so why not create residual income”
    Your post has given quite a few residual income ideas that people should investigate further!
    Personally, I like the idea of creating residual income from an online business, and you can also use that income to invest in further residual income streams such as stocks and real estate.
    Great post!
    Residual income rocks!

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