If you are like most working women, you are dependent on a bi-weekly paycheck for your income, even if you are a highly paid professional.  If that check stops – so does your financial security.  So how can you protect yourself and your family financially without adding side gigs to your side gig?  Residual income is the best way to achieve financial security no matter what happens in your life.

According to Investopedia  –  residual income is the money left over after you have paid all of your bills.  Literally, they mean “residue”. (And that is a financial education site??)  I don’t know about you, but the last thing I need in my life is financial leftovers!

The Legal Dictionary  has a far more accurate definition –  “The income that one continues to make after the work has already been completed”.

Residual income then, is really more like royalties, not leftovers!


Most of us were never taught by our parents or teachers to create residual income to increase our prosperity or as a hedge against the inevitable storms of life.  We are taught instead to have a rainy day fund (what if it gets depleted?) or that unemployment insurance or social security will take care of us.

The stock market with its crazy ups and downs is not a good source of financial security or residual income, yet  isn’t it amazing how many people think it is the route to long term financial security?

Women are especially vulnerable to economic storms even in this age of empowerment.  We are more likely to choose careers that offer flexibility over income.   We are more likely to interrupt our careers to have children or take care of aging parents.  Women experience up to a 37% drop in their standard of living after a divorce, and take longer to recover financially than men. We are more likely to outlive our husbands, and sadly, outlive our money.  Even in the 21st century, we are still more likely to allow our husbands to run the family finances as “his job” while we focus on other needs in the family.

That is insane. I am going to be very bold and say that every woman needs to create a residual income stream for herself.

Here are 6 reasons why smart women create residual income for themselves


1.  Life happens –  Whose life ever really goes according to plan?  Unexpected job loss, a change in living situation, a medical emergency can wreak havoc in our lives and in our finances.  How many times do they seem to all happen at once?  A modest residual income stream of just $500 a month can provide for a family through an emergency and save them from bankruptcy.

2.  A woman’s life demands flexibility and residual income allows us to have that flexibility without sacrificing financial security.

3.  You’ve always dreamed of living on the beach, in the mountains, own a homestead, or go full time RVing, and you don’t want to wait until you are 67 to start.  Residual income allows you to have complete flexibility in how and where you live.

4.  Personal safety net – Women are more likely to be financially vulnerable than men. That’s not a politically correct thing to say, but statistics bear it out. Women are more likely to end their lives in poverty then men.  Residual income is our own personal safety net and is a way to ensure that we never outlive our money.

5.  Residual income enhances the joy in life.  Want to take a trip with your children?  Surprise a dear friend?  Support a cause or ministry that is important to you? Ongoing residual income increases our financial independence and allows us to live from our hearts – instead of being ruled by what is (or is not) in our bank accounts.

6.  Peace of mind and less stress – A residual income stream eases the stress from the unexpected.  Do you need to help care for grandchildren?  Take care of an aging parent?  Take advantage of a rare opportunity? Go on a spontaneous vacation?  Instead of depending on income from a job or career that demands 40 or more hours per week, a lifestyle based on residual income allows you to be there for the people you love or to seize the day on a wonderful adventure.  How many of you can go to your employer and ask for multiple interruptions in your work week and still keep your job long term?


You don’t have to be a millionaire to have residual income or a business genius to create it.  The beauty of our business model is that anyone can create meaningful residual income without quitting their job or mortgaging the family home.   That’s life changing!  I’d love to hear your thoughts! Feel free to post your comment below.



Karen Hurd first learned about residual income from her grandfather.  She and her family have been enjoying residual income from her business for over 21 years.  That income allowed her to homeschool her 5 children and to take a 2 1/2 year maternity leave without reporting to a boss.  She loves to mentor women to create their own residual income stream.  Click HERE  to learn more about working with Karen.