Definition
Earnings from activities that require little daily effort, such as rental income or dividends, helping you build wealth over time.
What to consider
- Look for opportunities that generate income with minimal daily effort.
- Plan for initial setup time and costs before enjoying steady returns.
- Review performance regularly and reinvest when possible.
Real world scenarios
- Sharon lists a spare bedroom on a homeshare platform, earning passive income while still working her day job.
- Dave invests in dividend-paying stocks and receives quarterly payments without extra effort. This passive stream supplements his full-time salary.
- A blog with affiliate links provides Simone ongoing revenue long after she writes the initial articles, increasing her monthly cash flow.
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