Passive income is earnings derived from an enterprise in which a person is not actively involved. It includes anything from blogging to property management to creating a mobile app. It does not include salary, portfolio or investment income. The effort is front-loaded, and then the money comes.

The benefit of passive income is that your earnings aren’t directly tied to the hours you work. This means you can work your full-time job, be a stay at home parent, or do whatever it is you do — while enjoying extra income on the side with little to no effort.

Since over half of the world’s millionaires have at least three streams of income, passive income is a must on the path to true financial independence. As Warren Buffett once said, “If you don’t find a way to make money while you sleep, you will work until you die.”

Is your interest peaked? This infographic from Lexington Law gives examples of different passive income streams based on how much money and time you’re willing to invest.