Passive income is income that is generated without the need for active work or regular involvement. This means that once the income stream is set up, it can continue to generate money without the need for ongoing effort. This is in contrast to active income, which is earned through regular work or services provided. Examples of passive income include rental income from properties, dividends from investments, royalties from books, music or patents and income from businesses in which one is not actively involved. It’s important to note that while the idea of passive income sounds appealing, it often takes time and effort to set up the income stream, and it may require ongoing maintenance or management to sustain it.