Residual Income That Just Keeps Coming In
By: Louis-Charles Martel | Posted: 06th June 2009
Having residual income in your bank account is a great feeling. This is the income that is left over after all the bills are paid each month. The mortgage payment is made. The utilities and the tuition is paid. After all the accounts payable are taken care of the residual, or passive income as it is often known, is the nice bit of money leftover.
You don't really have total control of your residual income. It can vary from month to month depending on its source. What your earned income minus all your bills becomes your residual or passive income. It's that little extra leftover. There are other places where residual income is found.
Residual income, in most instances, comes on a monthly schedule. When you open your bank statement, you will see the interest you have earned on your checking account. This assumes you have an interest-bearing checking account. If you own stock in a company, you may not see your dividends until a quarterly statement. Any income that comes to you due to an original action on your part, is a residual income. Even pension checks are considered to be residual income.
If you have a mortgage on your home or the home you rent out, upon the complete payment of that mortgage, the funds you use to pay to the mortgage company is no longer needed there so it becomes residual income. It's like there is now an empty space where money is no longer needed. You can stash that money away as residual or replace the mortgage payment with a boat payment. It's up to you.
Applying for a loan? You will have an easier time acquiring a loan, if you can show the lender evidence of residual income. You don't spend every penny you earn, and therefore, have the means to pay back borrowed money. You can often borrow money cheaper than emptying out a source of residual income. Is the bank interest less than the interest you are earning on your bond?
Income is taxable. Except, pension checks are taxed differently in different states. Other residual income is taxed and you should file accordingly after talking with your accountant. The residual income can add up and it can be very helpful in many financial situations even if it is taxed.
It is important to keep track of all the financial dealings you undertake. If you are still working and do not have time to file taxes, then go to an accountant and have him take care of filing so that you avoid the wrath of the IRS. All your receipts for everything to do with your finances and residual income are important. Be a good bookkeeper. Have good habits,, it will help.
Look beyond today when you choose the money makers of tomorrow. Set up and put in place some sources that will provide you with residual income in the years to come. Be aware of how to plan for the future and how to use that planning to promote some residual income. The financial little extra can become your ticket for the future.
Who Else Wants A Proven Residual Income Business With 6 Easy Automated Income Streams? Plug-In Profit Site Is Our #1 Recommended Residual Income Opportunity.
This article is free for republishing
Printed From: http://www.a1articles.com/residual-income-that-just-keeps-coming-in-921726.html
Back to the original article
Tags: bearing, money, residual income, instances, stock, checking account, dividends, passive income, mortgage payment, mortgage company, empty space, earned income