passive-income

Vocabulary Word

Definition

'Passive income' is the money you make regularly without much ongoing effort. It's like getting rent from a property you own but don't live in.

Examples in Different Contexts

In real estate, 'passive income' comes from property investments, where the investor does not actively manage the property but earns rental income. A real estate investor might state, 'Investing in rental properties is a popular way to generate passive income and build wealth over time.'

Practice Scenarios

Business

Scenario:

Many entrepreneurs are diversifying their income sources. It's a wise move in uncertain economic times.

Response:

Yes, having multiple passive income streams can provide financial stability in uneven markets.

Creative

Scenario:

Your artwork is gaining traction online. Have you considered leveraging this popularity into a more stable income stream?

Response:

That's a great idea. Selling digital prints could be a valuable source of passive income.