Passive income

Passive income is the money earned from a business or investment that requires minimal or no effort from the earner to maintain or generate. This means that once the initial work of setting up the business or investment is done, the income continues to flow without continued effort, allowing individuals to earn money even while they sleep. Passive income is important because it allows individuals to diversify their income sources and create multiple streams of revenue. It also provides financial security and stability, as passive income streams can continue even when traditional sources of income are disrupted or lost. Examples of passive income include rental income from properties, dividends from investments, royalties from books or music, and profits from a business that is run by a manager or employees.