How To Invest To Generate a Passive Income

Generating a passive income is hard to do, but there are many ways to do it.  I will cover the most common and basic ones here.  It is important to note that most income is not truly passive in the sense that no work was required.  However, in my examples below, you will see how the income is now passive since the work was done prior to the income being made. Passive Investment Income The first major way individuals generate passive income is through investments.  This can be done because many investments distribute gains in the form of dividends or distributions.  These dividends and distributions are income, and many people are able to live off of them. A common strategy is to put together a portfolio of high dividend paying stocks.  In … [Read more...]