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Passive income is the foundation of long-term financial independence. Unlike active income—where you trade time for money—passive income allows you to earn continuously from investments, assets, or systems that operate with minimal daily effort. It’s about working smarter, not harder. Common sources of passive income include dividend-paying stocks, real estate investments, peer-to-peer lending, royalties from creative work, and digital assets such as online courses or eBooks. In the digital age