December 31, 2022

What Is Passive Income? Definition, Examples & 9 Ideas for Beginners

Passive income is money you earn from an asset or investment without directly trading your time for each dollar you receive. In simple terms, passive income means income that can continue coming in after the initial work or investment has been completed. Common examples include investment income, rental income, royalties, website advertising, affiliate marketing, digital products, and online courses. But passive income does not mean effortless income. Most passive income streams require significant work, money, or both before they begin producing meaningful results. In this guide, you’ll learn what passive income means, what counts as passive income, how passive income works, common examples, and nine passive income ideas for beginners.