ELI5: Explain Like I'm 5

Passive income

Passive income is income that you make regularly without having to work for it. It is usually money you make from investments you have made or other sources of income that require minimal effort to maintain. For example, if you own a rental property, you would receive rental income every month. Another example is investing in stocks or mutual funds and collecting dividends (a portion of the company's profits) on an ongoing basis.