Financecalendar_todayLast updated: Apr 2026
What is Passive Income?
/ˈpæsɪv ˈɪnkʌm/
Passive income is money earned with minimal ongoing effort — from investments, royalties, rental properties, or businesses that run without your direct involvement.
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Everyday Example
Writing a book once and earning royalties every year is passive income. Receiving dividends from shares you hold is passive income.
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“Many financial independence movements are built entirely around building enough passive income streams to cover living expenses without needing a salary.”
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Did you know?
Robert Kiyosaki's "Rich Dad Poor Dad" (1997) popularised the concept of passive income for a mass audience, triggering a cultural shift in how people think about wealth.
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Key Insight
True passive income takes significant upfront effort or capital. "Passive" means low ongoing effort, not zero effort — the work is front-loaded.
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