Residual income, active income, leveraged income, passive income…

You’ve probably heard these terms, but do you know what each one describes?

All the ‘finance speak’ can be quite overwhelming – especially if you’re just starting out on your journey to build your personal wealth.

But, these are all things that can help you in your business journey, and they can certainly help you build your personal wealth.

Today, we’re going to kick that overwhelm to the kerb by learning about residual income. By the end of this article, you’ll know exactly what residual income is, AND how to create it.

Sound good? Let’s dive in!

Mama, You Need To Know About Residual Income

What Is Residual Income?

Residual income is a financial term that has a few different definitions according to the context.

In the corporate world, it refers to the amount of money remaining after all costs for a project or investment are subtracted.

But we’re people, not corporations, so we’ll focus on the definition as it applies to us – specifically, working mums!

For us, residual income is a type of income that you continue to receive even after you’ve finished doing the work that initially produced the income.

For example – let’s say you’ve written and published a book. The money you earn from the ongoing sales of that book over the years is classified as a residual income.

The same would apply if you’d written a song. You receive royalties for your music – that is residual income. There are plenty of other ways to receive residual income, but we’ll look at those a little later on.

Isn't it Like Passive Income?

If you’re thinking that residual income sounds a lot like passive income, you’re totally right!

The terms passive and residual income are often used interchangeably. Although, some financial experts have slightly different ideas about the specifics.

In personal finance circles, residual income can also refer to the amount of money you have left after you’ve paid off all your debts and bills.

But for us mamas, residual (aka passive) income is all about building side hustles and income streams that keep the money flowing – even when the hard work is done and dusted.

Why Is Residual Income Important to Working Mamas?

Why should working mamas care about residual income? Because it’s our key to financial (and actual) freedom.

Instead of trading your time for money by working a job that pays you by the hour, you can create income streams that pay you even when you’re not working.

That means you can work around your life, your schedule, and your kids instead of fitting your obligations in around a job.

It means you don’t constantly have to be ‘on’ to earn.

It also means you can create multiple income streams to help you gain control over your finances and build the kind of life you want, without sacrificing time with your family.

I give regular updates on the my multiple income streams in my newsletter. Download my guide to leveraged and passive income and you’ll automatically be added to my email community too.

Preview of the pages in the Leveraged Income Guide.

The sky is the limit when it comes to earning this type of income!

You can use your residual income streams to earn as little or as much as you like.

There is also no limit on the number of streams that you can create either. You just need to be able to work within your own capabilities at the time.

Let me just remind you that kids get older and need less attention over time. You’ll eventually get more time to invest in your residual income streams – and that’s when the magic can really happen. Now is the best time to get started.

How To Create Residual Income

Thanks to the wonders of the internet, there are many ways to create a residual income, even for busy mamas!

A passive or residual income doesn’t mean there’s no hard work involved. You still need to spend time creating your residual income stream. But once that part is done, there is little to no work required to maintain the income.

Here are a few examples:

💰 Investing in stocks (especially dividend-paying stocks), bonds, or real estate

You don’t even need to be an expert to do this. Check out a platform like Sharesies or speak to a financial advisor to see how you can make your money work for you in stocks.

💰 Affiliate earnings from a website

An “affiliate” earns an income by marketing someone else’s products or services.

You can also use an affiliate to sell your products and services.

The affiliate gets a cut of the profits when the sale proceeds.

You can provide links to products on your own website, publish on a public website, or have others post links for your products on their website. Income can be tracked via affiliate links.

💰 Create and sell an online course

If you have specialist knowledge, you can turn it into an online course!

Create, load and market your content on a course platform as your own product, using platforms like Kajabi or Teachable, for ongoing income.

💰 Set up an online shop selling digital products

Photos, recipes, graphic templates, knitting patterns, printables etc. Anything you can create once, then sell again and again can build a steady residual income when done right. Check out my shop here.

💰 Publish and sell a book or e-book

Write it once and reap the financial rewards over and over every time your book sells to a new reader.

💰 Rent out your property

Got room to spare or a whole house? You can make a good income by renting it out.

💰 Become a distributor for products you use and love

These are companies that use network marketing to sell their products, so you can create residual income streams as a result of using and sharing their products.


Residual income is a fantastic option for mothers, providing you with the flexibility to create wealth from anywhere at any time.

You can put in as much or as little time as you want, and put your existing skills to use – all while creating financial stability for your future. What’s not to love!

Find out more about creating residual income in this download.

Preview of the pages in the Leveraged Income Guide.

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Preview of the pages in the Leveraged Income Guide.

DOWNLOAD: A Guide To Motherhood Friendly Leveraged Income

Download this free guide to find out:

  • WHAT leveraged income is
  • The DIFFERENCE between passive, leveraged and residual income
  • WHY leveraged income is great for working mothers
  • EXAMPLES of motherhood friendly leveraged income generators
  • Leveraged income CREATION in a nutshell.
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