Verbull Word of the day
Finance glossary

Passive Income

Personal Finance · beginner
Definition

Earnings that require little ongoing effort to maintain.

Passive income flows from assets or ventures that need minimal active work, such as dividends, rental property, royalties, or interest. Building it usually requires significant upfront capital or effort, but over time it can supplement or replace earned income.

In a sentence

Rent from his apartment provided passive income with little day-to-day effort.

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