personal finance
passive income
Earnings from a source in which one is not actively involved, such as rental income, dividends, or royalties.
Example
"Her rental properties generated $3,000 per month in passive income."
💡 Memory Tip
PASSIVE = not active. Passive income comes in while you're being passive — doing nothing.
Etymology
Passive (not active) + income — income you earn without actively working for it.
Common Misspellings
pasive incomepassive incompassive incmepassiv income
Related Terms
See Also
rental incomeroyalties