Passive income Meaning and Definition
Pronunciation
/ˈpæsɪv ɪnˈkʌm/
Part of Speech
Noun
Definition
Income that is earned without actively working for it, often through investments, rents, or other means.
Examples
- Her passive income allowed her to travel and pursue her hobbies.
- He invested in dividend-paying stocks to generate passive income.
- The rental property provided a steady stream of passive income.
- Passive income can provide financial security and freedom.
- The app allowed users to earn passive income through advertising revenue.
Synonyms
- Investment
- Rent
- Dividend
Antonyms
- Active income
- Salary
- Wage
Additional Information
Passive income offers a way to earn money without actively working for it. This can provide a sense of financial security and freedom. There are many ways to generate passive income, including investing in stocks, bonds, or real estate, creating and selling digital products, or starting a blog or YouTube channel.
Passive income can also provide an additional source of income in retirement, allowing individuals to maintain their standard of living.
Etymology
The term “passive income” is believed to have originated from the idea of earning money without actively working for it, as opposed to active income which requires direct involvement.
Usage Notes
In financial contexts, passive income usually refers to income that is generated without the investor’s direct involvement.
Cultural References
Passive income has been featured in various popular culture references, including books, podcasts, and online articles.
Idiomatic Expressions or Phrases
“Live off passive income” means to maintain a lifestyle that is supported by passive income, without actively working for it.
Related Words or Phrases
- Investment
- Rent
- Dividend
- Active income
Collocations
- Generate passive income
- Invest in passive income
- Build passive income streams
- Live off passive income
Frequency of Use
Passive income is a relatively common term used in personal finance and investing.
Common Misspellings
- Pasif income
- Passiv income