What are passive income streams?

A passive income stream is any type of income that does not require constant active participation to continue to earn money. Passive income streams require at least some work to start up before they start to earn.

One example of a passive income stream is owning a rental property. The landlord puts work into purchasing the property and getting it ready, and then he receives rental payments as his passive income. Most passive income streams require occasional work, but this work can often be hired out. Rental properties need repairs and maintenance periodically, but the landlord can hire a property manager to take care of it.