Passive income is money earned with little to no effort on your part after the initial setup. This can come from various sources, such as real estate rentals, dividends from stocks, or interest from savings accounts. The idea is to create a stream of income that continues to flow even when you're not actively working. Many people seek passive income to achieve financial freedom or to supplement their regular earnings. By investing time and resources upfront, you can build a system that generates income over time, allowing you to focus on other pursuits or enjoy more leisure time without worrying about your finances.