Passive income is a money flow that doesn’t require any consistent effort to keep, unlike direct income, like cash earned from an actual job. Broadly speaking, passive income is created by starting small businesses that, once an initial investment is made, begin to produce passive income without any ongoing upkeep on your part. The passive income definition that I like the best is the one that says you are earning income passively and not directly. This means that you won’t be bogged down with paperwork and meetings. It also means that you won’t have to constantly defend your business, and you will be able to spend time doing the things you love most.