"Passiveincome"(passiveinthesensethatitrequiresminimaleffortorcontinuouswork)referstotheincomethatisgeneratedfrominvestmentsorassets,inwhichtheindividualdoesnotactivelyparticipate.Thiscanincluderental
"Passive income" (passive in the sense that it requires minimal effort or continuous work) refers to the income that is generated from investments or assets, in which the individual does not actively participate. This can include rental income from properties, dividends from stock investments, interest income from bonds or savings accounts, or royalties from intellectual property rights.
On the other hand, "passive investment" refers to the act of investing in assets with the goal of generating passive income. Passive investments typically involve putting money into assets such as stocks, bonds, real estate, or mutual funds, with the expectation of earning a return over time without actively managing them.
Both passive income and passive investment are integral components of the path to financial freedom. By investing in assets that generate passive income, individuals can gradually build a portfolio that can provide them with a steady stream of income, reducing their reliance on active work. This allows for more flexibility and the possibility of financial independence, where one's expenses are covered by the passive income generated from investments.