Passive income is a fast-growing segment of the market. It refers to the income produced by investments in real estate, precious metals, oil, shares, and other marketable securities, and shares, where no active manager or salesman is involved. Passive income is not taxed; and therefore, there is no loss. Passive income is what your portfolio produces every year.

Of course, if your investments are already making passive income, then you don't need to read the article. If they are not, I'll try to explain the concept of passive income to you.

There are various ways to create passive income

There are many different ways to create passive income, but here I'll just focus on five of them.

1. Get your money into "safe" securities.

How many of you think that money is safe in a savings account? With inflation, a money that could buy you food when you were five years old is now worth only a bit more than the paper it's printed on! But you know what? These savings accounts can only earn you little over 2%. That's why the banks charge you interest. They need the money to keep the banks in business, so they have to eat that 2%.