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Money earned regularly with little to no ongoing effort after the initial work is done.
In Depth
Passive income is money you receive on an ongoing basis without actively working for it day-to-day. It often requires an initial investment of time or money to set up, but then generates income with minimal continued involvement. This type of income can help build wealth and financial freedom, as it doesn't rely on trading your time directly for money.
Example
Rental income from a property you own is a common form of passive income.