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.

Impact

Scenario:

Our online campaigns have been drawing a lot of attention. We should capitalize on this to support our mission further.

Response:

Exactly, generating passive income from our online courses could fund many of our community initiatives.