Origin Dictionary / OD-012
Passive Income
The income looks passive from the side that receives it.
01Dictionary Meaning
In everyday use, passive income is money earned with relatively little ongoing direct work, often from assets or work completed earlier.
02What People Think
"Build it once. Get paid forever."
03What’s Underneath
Rent may require a property, repairs and someone managing tenants. A digital product needs creation, distribution and occasional updates. Investment income requires capital and exposure to risk.
Less visible labor can mean earlier labor, outsourced labor or money doing a job that effort alone cannot do. It can also mean that a revenue stream genuinely needs little maintenance.
The distinction matters because "passive" says little about starting cost, reliability or what happens when the system breaks.
04The Game
What keeps the payments arriving, who handles the exceptions, and how much remains after those costs?
05One Line
Passive income often has an active backstory.
Explore M1 Library
M1Youth Finance
Find the work and capital behind recurring income.
Everyday usage here; tax definitions of passive income depend on jurisdiction.
← Back to Dictionary