Olamide M. Adesanya

Ultimate Guide To Passive Income Streams. AI-Generated.

Introduction to Passive Income Passive income refers to the money you earn with minimal to no effort on your part after the initial work is done. It contrasts sharply with active income, where you trade time directly for money. Passive income can come from various sources such as rental properties, dividends from investments, royalties from creative works, or profits from businesses you own but do not actively manage. The importance of passive income cannot be overstated, especially in today's volatile economic environment. It provides a cushion against financial instability, offering a safety net in times of job loss or economic downturns. This financial stability can reduce stress and provide more freedom to pursue passions and interests.