A lot of people focus on earning from linear income which is a one-shot compensation or payment in the form of a fee, salary, wage, or commission. This type of income is directly proportional to the number of hours you invest in the job. On the other hand, residual income, or passive/recurring income, is income that continues to be generated after the initial effort has been expended.
One of the advantages of residual income is that once things are set in motion, you will continue to make money from your initial efforts. Meanwhile, you gain time to devote to other things such as generating more streams of residual income. Some examples of these include associate programs and savings or investment programs that pay you residual income in the form of interest or dividends.