Passive income is a type of income that requires little to no effort to maintain. Unlike active income, which is earned through working, passive income is generated through investments and other endeavors that require initial effort but eventually produce income with little to no ongoing effort. Some examples of passive income include rental income from property investments, dividend income from stock investments, and royalties from creative works such as books, music, and patents.

One key aspect of passive income is the ability to earn money without actively participating in the process. This makes it an attractive option for those looking to build wealth, as it can provide a steady stream of income without taking away from time and energy spent on other pursuits. Additionally, passive income can help to diversify an individual's income streams, reducing the risk associated with relying on one source of income.

However, it's important to keep in mind that there is no such thing as truly passive income. Most passive income streams still require some level of effort and attention, especially in the beginning when the investments or endeavors are being established. Additionally, passive income streams can be unpredictable, and there is always some level of risk involved.

In conclusion, passive income can be a valuable addition to an individual's financial portfolio, providing a stable source of income with the potential for growth. However, it's important to approach passive income with realistic expectations and a thorough understanding of the effort and risk involved.