passive income

Passive income refers to earnings generated with minimal ongoing effort after the initial setup. Unlike a traditional job where you trade time for money, passive income streams allow you to earn from sources like investments, rental properties, or royalties. Once established, these income sources can continue to generate revenue over time without constant involvement. Examples include dividends from stocks, rental income from real estate, or royalties from creative works. The goal of passive income is to build financial stability and freedom by creating revenue that doesn’t require continuous active work.