How to Create Passive Income

by Contributor ; Updated July 27, 2017
Create Passive Income

How to Create Passive Income. No one likes living paycheck to paycheck or wondering how you'll put food on the table. Financial freedom is the American Dream and it's closer than you may think. Creating passive income is a great way to increase your resources without overextending yourself. Follow these steps to create passive income.

Step 1

Raise your money consciousness. To create passive income, you need to think about money in new ways. Be willing to explore avenues that you may not have in the past. Read books and consult experts if possible. Stay open-minded and upbeat.

Step 2

Invest in rental property. This is probably the most common way to create passive income. Look into programs for first time buyers or real estate investors to help you get started. Don't worry if you're not in a position to pursue this option; there are other opportunities to create passive income.

Step 3

Sell information products. Everyone is an expert on something. Leverage what you know. Marketing your own info products requires little to no startup cost and has major returns. You can also market other people's information products.

Step 4

Become a network marketer. There are many programs available. Take the time to weed out scams and find the best program for you. Be sure to get involved with something you truly believe in.

Step 5

Put your money to work. Don't overlook the importance of managing your money. Check out high-yield savings accounts, CDs, mutual funds and other investment vehicles.

Tips

  • Though passive income requires more work up front than over time, you still have to do maintenance to keep your cash flow working properly.