Income comes in two forms: working income and passive income. Working income is the money earned from active work. This includes a paycheck from a day-to-day job, or for an entrepreneur, the profits or income taken from a business.

Passive income is money earned without you actively working.

This entails generating ongoing income from businesses where you do not need to be personally involved for that business to operate and yield an income.

Examples include rental real estate; royalties from books, music, or software; licensing your ideas; becoming a franchisor; owning storage units; owning vending or other types of coin-operated machines; and network marketing, to name just a few.

It also includes setting up any business under the sun or moon that is systematized to work without you.

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T. Harv Eker-Secrets of the Millionaire Mind