Passive income is important because it will add income to your bottom line without taking hours of your time like a 9-5 job. An example could be money you earn on the stock market, from rental income, or from dividends. It is considered passive income if you do not have to be totally active in earning it. That does not mean you will not spend any time earning it, but the amount of time that you do spend will be much less than your full-time job.
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