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What is passive income? Passive income  (or unearned income, as it’s classified by the Internal Revenue Service) is defined as income that requires minimal work to generate and maintain, coming from somewhere other than a traditional employer. Passive income streams can come from investing in mutual funds or real estate, selling products online, publishing online courses, or other  side hustles  in which the earner doesn't have to actively participate. Unlike active income, passive income is often generated automatically, providing residual income with minimal time and effort. It can improve your personal finances and give you the freedom of time. Not having to trade your time for money can reduce stress and anxiety, and additional cash flow can make you feel more confident about your financial future. Whether you’re a service provider trying to stop selling dollars for hours or a product business looking to add income sources that don’t involve the logistics of sending o...