There are a lot of employees who are having a problem on their residual income. This is very true especially to those employees who have a lot of loans from different lending agencies. Not only from the legitimate lending agencies but also from fly by night agencies/individuals who are charging them up to 20 percent per month of interest.
Residual income is defined as the amount left after all expenses and obligations are paid for the month. What if the employee is paying more than what he is earning? This sounds stupid but there are a lot of employees who are experiencing that.
This scenario in the life of some employees are also due to their own doings. Some just really don't know how to budget their income. Some are just so extravagant and because of their massive expenses, their residual income is so small.
One has to watch their expenditures. Residual income is so important that this is the basis if a family is still living in a decent way of life or already in the poverty line. Do not spend more than what you earn. It's a very simple thing to say but most people just don't know how to apply it in their lives.