Passive income is frequently misunderstood and confused with ways to make money, as stated previously. Although a side hustle or second job can be a great way to boost your earnings, they are not truly passive unless they allow you to move backwards as you get more and more money. Passive income, however, is not... A passive income source is intended to supplement your regular income or enable you to live a comfortable lifestyle. Your primary job is not a passive income source.

Passive income is one of the most popular pieces of personal finance advice. It's what advisors tell you to set up for any extra money you might have, but it can be tough to figure out what passive income is. Income that flows without effort or liability on your part isn't always easy to come by.