Passive income refers to earnings that require minimal effort to maintain once they are established. This type of income can come from various sources, such as rental properties, dividends from stocks, or interest from savings accounts. The key characteristic is that it continues to generate revenue without the need for active involvement. Many people seek passive income as a way to achieve financial freedom or supplement their regular earnings. By investing time and resources upfront, individuals can create streams of income that provide financial stability over time, allowing them to focus on other pursuits or enjoy more leisure time.