 The easiest way to explain passive income is imagine that you own a house or you want to build a house so that you can rent it out to tenants. Now, once you build that house, you'll get rent checks from those tenants every single month, whether you're on the beach or taking a nap or just taking the month off, right? That's what we consider passive income. Meaning you're not trading your hours for dollars. Now in the modern age, we can build physical assets with a hammer and wood like a house and we can rent that out or we can use what's called technological leverage and we can build what's called digital assets. These are things like online courses, iPhone apps, software, affiliate revenue, things like this, things where we've used the power of technology to get what's called leverage, meaning we have things doing work for us when we're not even around.