Passive Income

Passive income is making money without doing anything once you get it started. Examples of this is residual income, royalties, and dividends.  Residual income is making money on something every time it's used.  Some businesses have residual income.  Learn about compound residual income, because it is better than regular residual income.

Royalties are making money on something every time it is seen like a tv show.  You get royalties on albums and ebooks too.  Make sure the product you create is of high value.  This form of cash flow can pay you forever.  Dividends are the payment a stockholder get from having stock.  Dividends yield is the amount of money you get for the amount you paid for.  The higher the yield the more money you make.

Most people only have active income, which is wages, tips, commissions, etc.  It would be a good idea for you to invest disposable income into passive income.  Find a good financial advisor so you can make good investments.  If you do this well, your retirement will be great!  If you do all of this your financial future will be secure.

References:
http://www.investopedia.com/