What is Passive Income? Passive income is income that is generated with little or no ongoing effort. It is the opposite of active income, which is earned through active involvement, such as a salary earned from working a job. Passive income can be generated through a variety of methods, such as investing in dividend-paying stocks, rental properties, or starting a blog or online business. Examples of passive income include rental income from property you own but don't manage, interest or dividends earned on investments, and royalties from creative works like books or songs. The idea behind passive income is that you put in the initial work or investment upfront and then reap the benefits with little additional effort. It's important to note that there is no hard and fast rule when it comes to classifying income as passive or active. Some forms of passive income may require more time and effort to maintain than others, and in some cases, the income may be considered semi-pa...