passive income

USAGE SUMMARY

'passive income' is a correct and usable phrase in written English.
It is commonly used to refer to income that is generated without an individual's direct involvement or active effort. For example, "After years of saving and investing, John was able to retire and live off of his passive income."

✓ Grammatically correct

News & Media

Wiki

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

"One way to gain passive income is to collect rent".

The New York Times

That means 21st Century makes at least $1.13bn in passive income from the network before it sells a single advertisement.

The Guardian

The podcast has helped build  an audience for Smart Passive Income videos, an e-newsletter and an e-book.

The New York Times

Mr García Padilla is encouraging medical tourism and will allow rich newcomers to avoid tax on passive income.

The Economist

It's called the Smart Passive Income Podcast, and it offers information and advice about online marketing and sales strategies.

The New York Times

Most OFCs do not levy capital-gains or inheritance taxes, nor taxes on passive income such as interest.

The Economist

"My goal was to have enough passive income — although it's not totally passive — to be able to do this," he explained.

The New York Times

He said, "I'll be candid: I'm stockpiling now on real estate to generate passive income but also to have havens to go to".

The New Yorker

In his first year running his online business, he says he made $203,219.04 (as he reports  in his annual passive income report).

The New York Times

It's basically passive income for them".

TechCrunch

–Evaluate your mix of portfolio and passive income.

Forbes

Expert writing Tips

Best practice

Use "passive income" when discussing strategies for financial independence or early retirement to emphasize income generation with minimal direct effort.

Common error

Avoid associating "passive income" solely with unrealistic "get-rich-quick" schemes. While it requires less direct effort over time, establishing sources of passive income typically involves initial investment, planning, and ongoing maintenance.

Linguistic Context

The phrase "passive income" functions as a noun phrase, typically used as a subject or object in a sentence. It represents a specific type of income, as evidenced by Ludwig's examples, where it's often associated with investments and financial planning.

Expression frequency: Very common

Frequent in

News & Media

49%

Wiki

28%

Formal & Business

23%

Less common in

Science

0%

Encyclopedias

0%

Social Media

0%

Ludwig's WRAP-UP

In summary, "passive income" refers to regular monetary income not directly tied to active employment, like rent or interest. Ludwig AI confirms it's grammatically correct and commonly used, particularly in News & Media and Wiki contexts. Related terms include "unearned income" and "residual income". When using "passive income", avoid associating it with unrealistic schemes and clearly differentiate it from active income. The phrase appears very frequently in diverse contexts, showcasing its relevance in financial discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

unearned income

This refers to income derived from investments and activities where the recipient does not actively participate.

residual income

This highlights the continuous income generated from a one-time effort or investment.

mailbox money

This is an informal term for income received regularly with minimal effort, like dividends.

investment income

This specifies income derived solely from investments, such as stocks or bonds.

rental income

This income comes specifically from renting out properties.

royalty income

This denotes income received from royalties on intellectual property or natural resources.

annuity payments

This refers to periodic payments received from an annuity investment.

interest earnings

This refers to money earned from interest-bearing accounts or investments.

dividend income

This is income received from dividends paid out by companies on their stock.

side income

This is additional income earned alongside a primary job.

FAQs

What are some examples of "passive income"?

Examples include rental income from properties, dividends from stocks, royalties from intellectual property, and earnings from online courses or ebooks.

How can I start generating "passive income"?

Starting requires identifying opportunities that align with your skills and resources, such as investing in dividend stocks, creating and selling digital products, or renting out a spare room.

What's the difference between "passive income" and active income?

"Passive income" is earned with minimal ongoing effort, while active income is earned through direct labor or services. Consider "unearned income" as a substitute for passive income.

Is "passive income" tax-free?

No, "passive income" is generally subject to taxation, though the specific tax treatment may vary depending on the source of the income and applicable tax laws. Be aware of applicable "passive tax" regulations.