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Passive income

Passive income is a type of income that is not directly related to the time you invest in it. As its name suggests, it is generated passively without you having to devote your time and attention to it.

In contrast to passive income, there is active income, such as a regular job. In a salaried job, to earn money you have to dedicate a number of hours a day to working for the company, as many as the contract states.

In the end, as an employee, what you do is exchange your time for money. If you don’t work (invest your time), you don’t get paid.

The same is not true of passive income. It is a source of income that does not depend directly on the time you work or the work you do during that time. Its main characteristic is that it is generated automatically, i.e. passively.