WHAT IS PASSIVE INCOME ? If are wondering what is this PASSIVE INCOME exactly, I can explain you with a very easy line which is "Make Money While You Are Asleep". Still not clear? OK let me give you a exact Definition of Passive Income. DEFINITION Passive income is generally defined as a stream of income earned with little effort, and it is referred to as progressive passive income when there is little effort needed from the individual receiving the passive income in order to grow the stream of income. Examples of passive income include rental income and any business activities in which the earner does not materially participate during the year. Passive income differs from active income which is defined as any earned income including all the taxable income and wages the earner get from working. Linear active income refers to one constantly needed to stay active to maintain the stream of income, and once an individual chooses to stop working the income will al...