Passive income refers to earnings that are generated with minimal effort or direct involvement on the part of the recipient. Unlike active income, which is earned through active work or participation in a job or business, passive income typically comes from investments, rental properties, royalties, or other sources where ongoing effort is not required to generate revenue.

Building multiple streams of passive income can provide financial stability and flexibility, as it allows individuals to diversify their sources of revenue and reduce reliance on traditional employment. However, it often requires upfront investment of time, money, or resources to establish these income streams initially.

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