Residual Income v/s Regular Income

Residual income is what you are referring to most of the time when you earn money online via services such as AdSense, paid reviews, affiliate marketing etc. It’s nothing but a type of passive income – just like interest on deposits or rental income – except that the risks associated with the same is quite high and you don’t necessarily keep getting similar monthly checks every time.

A regular income, on the other hand is something that’s generated out a permanent job, a government service or a long term contract. There is probably less risk associated with this approach and by far it is the most efficient way of planning your expenses and meeting them effectively. The topic under discussion in today’s post though is how residual income streams and regular jobs can differ and why regular jobs win almost all the time in derisking your life.

Financial security – short term

A regular job mostly comes with numerous perks and benefits including free medical insurance and life insurance coverge etc. You will not be able to fully appreciate the benefits of medical insurance unless you lose your regular job and face life threatening situations due to illness, accidents etc. And if you want to take care of all those expenses yourself, you could be even bankrupt with one such incident in life.

Financial security – long term

Most regular jobs have a government provided pension scheme or retiral benefit attached to the same. This is a huge boon for those who retire and wants to lead the rest of their lives peacefully without having to worry about money issues. of course, just like insurance, one can opt for a pension scheme or public provident fund but then you are investing a lot more from your pocket and there’s no employer contribution in that case. Hence a regular job is more prefered in this aspect as well.

Time flexibility

When you have a residual/passive income kind of job, you definitely (in most cases) have great time flexibility as you don’t need to visit an office and come back on time after putting several mandatory hours there in. This is a great advantage, indeed, with work from home options – be it online or offline.

Resource management

When you have your own residual income services/sales, you have to find your own resources such as PCs, stationery, laptops, phones etc all by yourself. In the case of a regular job, however, the employer provides all these to you. Regular income opportunities are the winners here.

Worklife balance

More Organized life is what regular income jobs offer but definitely the work life balance will be better once you have passive and residual income opportunities.


Well, this may be my belief alone but I think people those who are with a regular jobs, tend to be more organized in their lives as they follow a routine in terms of time, resources and money management. Once you move more towards residual sources, I get a feeling that the life gets more disciplined and organized.


Residual income streams may mean better satisfaction levels to you out of your work almost all the time. Afterall, you opted for something you really like. In the case of a regular job though, you may get stagnant and may end up doing uninteresting work as you don’t quite design what you want to do.


Finally, the health part. In my opinion, those who are after residual online income generation practices (and especially internet marketers and online job seekers) are not health conscious people – partly due to lack of discipline and their tendency to work at any time and at any place. Again, others may have their reservations on this topic.


Overall, there are quite a few merits and demerits for each option but I am a bit more lenient towards a regular job. Let me know what you guys think about this topic and pitch in with your comments.

Happy money making!


  1. I think in our country, India earnings made from blogging can be considered as a main income coz many bloggers here are making 4 or 5 figure dollar income. I think Health is one the important points. Bloggers and Freelancers who work at home should really take care of their as they don’t have much physical activity when they work from home. What you think?

    • @Mukundan, regular income is not defined by how much you make but the ‘how certain’ is your job and hence the income. I totally agree with the health concerns that you raised.

  2. @Mukundan Agree! For me it’s best if you have some short physical activity before and after working as well as take some small walk once in a while.

  3. I agree, the opporutunities are definitely there! Residual income is what a lot of people aims for now since working from home has a lot of benefits such as having more time for family. Keep up the good work ajith.

    • @Fazal, yes… residual is what we all aim at but I do agree that one or two out of 1000 must have set up a long business path around it via some innovation. And yes, work from home has got a lot of benefits as well, so long as people aren’t addicted to the Internet and their gadgets.

  4. nice study Ajith, me reduced my online activities now. due to eye strain.

  5. Nice comparison dude.

    I am with you. regular income or job is better than residual income.

    But it is better if we have both side by side

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