Passive income refers to a financial stream that earns money without effort from your side. Popular options include rental homes, dividend-paying stocks, peer-to-peer lending or royalties from books or online courses. Active income is something that requires constant work to build it and therefore wealth and financial freedom, while passive income allows people to get paid over and over again for work they do once, and enjoy financial freedom and independence. You no longer need to have a digital product before you can make a passive income online. With the advent of digital platforms such as blogging, affiliate marketing, and automated businesses, passive income is becoming more common than ever.
