Passive income is a type of income that is earned without the need for active participation or effort from the individual.
It is a form of income that continues to be generated even when the individual is not actively working. This type of income is generated from sources such as rental properties, stocks, bonds, royalties from a book or song, and interest from savings accounts.
The main idea behind passive income is to create a stream of income that does not rely on one’s active involvement, allowing for more free time and financial stability.
The goal of many people is to create multiple streams of passive income so that they can eventually live off of these earnings and not have to rely on a traditional 9-5 job. Passive income is a popular financial strategy among people who want to secure their financial future, achieve financial independence, and live a life with more freedom and flexibility.