Passive income is the income that comes from the work of someone else. The person who earns the income is not required to do any work for it to be received. This is very different from active income, where the person who earns the income must do some kind of work to receive the income. For example, an employee who works for a company is earning an active income. The company pays the employee and the employee must work in order to receive the income. If the employee leaves the job, the income stops coming. The person who owns the company, however, does not have to do anything in order to receive the income, since he or she already owns the company. The owner of the company has passive income.
A good example of passive income is rental property. The person who owns the rental property is receiving passive income. The property is owned by the person who rents it. If the person who owns the property dies, the property passes to his or her heirs. The heirs will not have to pay rent to the person who rented the property. They can simply use the property as they please. The person who owned the property did not have to do anything to earn the income.
Another example of passive income is interest earned on savings accounts. A person who owns a savings account does not have to do anything to get the interest. The bank does not need to send a check to the person, nor does the person have to write a check to the bank. The bank simply keeps track of the interest, and sends the interest to the person when the interest reaches a certain amount.
It is possible to make money through passive income. Passive income can be used to create a large sum of money, which can then be invested and used to earn even more passive income.