How to Passive Income aka Easy Money

Passive Income is a phrase we hear everywhere now days. What is it and how do you get it? Passive income is income derived from sources that do not require you to do anything(or a small amount of work up front). The income will usually come from several sources, interest, dividends, affiliate programs, etc. I will go into detail in the following steps.

Instructions

Difficulty: Easy

Things You’ll Need:

• Patience
• Cash
• Perserverence

1. If you want to make a descent living without working to hard than passive income is for you. Instead of going step by step I will touch on the different types of passive income and how you can use them.
2. Interest-savings accounts, money markets, CDs. This is the first and easiest way of building long term wealth and passive income. Interest is what you are paid by allowing a bank(or other institution) to lend your money. Generally speaking the best bet here is to use a high interest money market. A money market works like a savings account but has interest rates upwards of 5%+, while allowing access to the money if an emergency called for it. The secret here is to never touch the money. Allow the account to keep growing and building off itself.
3. Prosper Lender- This is my favorite and where I have most of my money. Prosper is like the eBay of loans. I am making 10-15% on my money. The secret here is to keep adding new loans to your portfolio. Dedicate all your earnings to reinvestment.
   
   The following is borrowed from the prosper website.
   
   Prosper is a marketplace for credit that enables people to lend money to other people in a safe, efficient manner. Prosper is a leap back to a time when people formed credit communities to help themselves live better lives and earn a fair return on their money. Prosper's founding principle is that people from close communities act more responsibly towards each other. Prosper leverages this powerful concept of community responsibility and applies it to person-to-person lending—resulting in better interest rates for people that borrow and lend.
   
   Prosper enables borrowers to request loans up to $25,000 by posting listings indicating the amount they want to borrow and the maximum interest rate they wish to pay. Lenders search for and select these listings based on the borrower's credit history, debt profile, and other factors. Lenders bid on listings by indicating a minimum rate they are willing to accept. When a loan is matched between borrower and lender, Prosper handles all of the tasks needed for payment and collection of the loan.
   
   Check it out here, if you sign up you will receive $25 and so will I for referring you!
   http://www.prosper.com/join/BostonCapPartner
4. Stocks, bons, mutual funds, and other similar investments- The key here is to allocate your funds to safe long term investments. ETFs and Blue Chip stocks are the best for building passive income because they are relatively safe and have consistent dividend payments. Set up the account to automatically reinvest the dividends for you and you can sit back and watch your money grow.
5. Affiliate Programs- Affiliate programs are a bit less passive at first. The way this works is you get a specified referral fee from the company you are helping to promote. The best example of this is amazon.com. You can create your own mini-store and anything that is sold will be 100% handled by amazon.com and you will receive a % of the sale. Here is an example that I use... http://astore.amazon.com/devienproduc-20
6. eHow writer program- This one is pretty simple. Sign up with this very website and write how to articles. If people view your article you will be paid(payments vary). This is a great way to raise cash to add to your other passive sources.
7. Adwords - Adwords are a great addition to a website. You simply put the code in the script and when people click on them you will be paid. It is a basic pay-per-click advertiser. This again is a great way to add cash to your recurring income sources.
8. Vending - This is a pretty simple source. Buy a vending machine and find a location to place it. Once a month check out the machine and take any cash from it. Again reinvest that cash into your other income sources. Although this sounds easy you will need to be wary of the location. Keep on the lookout for better spots or better selling candy brands.
9. Now this is Massive Passive! Real Estate Rentals - The idea here is to rent an apartment or house, owned by you, for an amount over what the mortgage is(if you have one). This is an excellent source of passive income, but because of the cost I am not going to say much about it. If you are at the point in your life where you are renting out properties you will most likely either have experience in passive income sources or be surrounded by people who are versed in them.
10. The final step is a point I want to make. Passive income has two main objectives from my view. You can either use it to supplement your income or you can really work at it for a few years and allow it to become your sole source of income. The early you decide your reason for building passive income the easier it will be to determine the best way to go about it.
11. Pardon me, could you pass the grey poupon! The next step? I know, you thought I was all done. Well the next step is to splurge your millions on a crazy, overpriced, fast car! Of course you will have a nice long driveway to park it in!

Tips & Warnings

• Decide how much you want to make per month passively and do not touch the money until you get there.
• Always have your eyes open for new opportunities.
• Do not allow yourself to lose patience, this is how you will build your long term wealth.