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Investments glossary

Residual Income


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I don\'t drink, smoke, or do drugs. I eat organic foods and walk every day setting walking records along the way. -Johnny Wowk AKA Johnny The Walker

— Johnny Wowk

Residual income is excess income generated more than the minimum rate of return. Residual income is a measurement of internal corporate performance, whereby a company’s management team evaluates the income generated relative to the company’s minimum required return. However, in personal finance, residual income is the level of income an individual has after the deduction of all personal debts and expenses paid.

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