What is a passive income?
Passive income is the best way to have a constant money flow.
In simple words, a passive income is an income for which you do not work much, and you receive money for a long period on your initial work. The major benefit of passive income is the money flow towards you.
Some of the examples of popular passive income are:
Dividends on your investments in share market and other places.
Interest on your savings in banks
Profit share from the joint ventures where you are not a working partner, but just a financer.
Interest on the money you gave to somebody.
The business that you own, but you are not working there, as others are running the business.
Rent from the property you own and others are using it.
Royalties from the books you wrote, and other intellectual properties that you own, like royalties from your inventions, patents, ideas and concepts.
Sell of your photographs, artwork and designs through websites.
Profit share or rent from your car/vehicle which is used by somebody else.
Long period commission on your initial work, like an insurance agent.
Any other income for which you do not work directly.
Please note that for tax purposes, some of the income types mentioned above are not considered as passive income, and definition of passive income is changes state to state.