What Is Passive Income?
Passive income is a type of income that requires little to no effort from the individual receiving it. It can come in many forms, such as rental property income, dividends from stocks and bonds, royalties from intellectual property or even interest earned on savings accounts. Passive income does not require an active involvement in order to generate money; instead, it relies on existing assets or investments for its generation.
The main benefit of passive income is that it allows individuals to earn money without having to actively work for it. This means they are free to pursue other activities while still generating revenue through their investments or assets. Additionally, passive income often has tax advantages over traditional employment-based incomes since taxes may be deferred until the funds are withdrawn at a later date. For those looking for additional sources of revenue with minimal effort required, passive income can provide an attractive option.