Also known as residual or passive income, recurring income is earned by creating or acquiring an asset that continues to pay of profits regardless of if there is still active work being done to the asset. Recurring income may be treated differently by the Internal Revenue Service for tax purposes.

Recurring Income Examples

Here are a few commonly used ways to earn recurring income:

  • Royalties from the sale of a book or song
  • Income from the ownership of a real estate investment property
  • Proceeds from renting a spare room on AirBnB
  • Investing in loans through a platform like Lending Club ot Prosper
  • Dividends earned from owning stock in a company
  • Stock photography royalties

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