How I create Passive Income from Scratch (Step-by-step Guide)

Welcome to The Income Dude, I’m here to help you build passive income from the ground up.

I’m Larry, the author of this blog. If you’re new here, let me give you a quick introduction.

The Income Dude, I’m here to guide you step by step on how to build passive income from scratch. No matter where you are in your career, whether you’re a student or already working, this blog will guide you on your journey to financial freedom.

But make sure you start your passive income journey at the “Start Here” section.

I want my readers to achieve their goals.

That’s why, at TheIncomeDude, every post is interconnected. No matter which article brought you here, starting from the beginning is your best bet. Think of this blog as a university program; it won’t be as valuable if you only take random classes.

First and foremost, I want you to understand what “passive income” really means.

“Passive income is a type of unearned income that is acquired with little to no labor to earn or maintain.” – Via Wikipedia

Now, let’s dive in!

Prepare your mindset

As you probably know, there are already hundreds of thousands of articles on this topic.

However, I’ve noticed that they all tend to follow the same format. Even the big-name publications write in a similar style to those sites I can only call junk.

This is risky because these junk articles don’t just lack useful information, they also mislead readers about what it takes to build passive income. People start to think that building passive income is easy and can be done in just a few months. After that, they believe they can kick back and relax for the rest of their lives.

In reality, creating a stable stream of passive income is pretty challenging. Building passive income takes years, not just days or months.

I spent five years building my passive income by purchasing and managing rental properties. During this time, I faced challenges like finding reliable tenants and managing property maintenance, but it was all worth it in the end. And I know plenty of people who are much more skilled than I am, but it still took them over 10 years—sometimes even 15 years. (The time it takes depends on many factors)

So, I need you to get ready with the right mindset.

Get rich slowly. Be willing to make mistakes and try again. Keep moving forward. Don’t worry about what others think!

If you don’t adopt these mindsets, I’m sure you’ll fail. Not just in building passive income, but you might fail in life, too!

The process of building a passive income source

Once you’ve got the right mindset, you’ll need to understand the process of building passive income.

Every successful person has their own unique process.

But here’s a general roadmap:

Start here → Get a job → Learn more about high-income skills → Pick a side hustle → Start a business → Invest.

Looks like you’ve got a lot to learn!

So how to make passive income from scratch?

Based on the process outlined above, the first step on your journey to building passive income is to get… a job.

Sounds simple, right? But a lot of young adults today are unemployed.

I’m not criticizing anyone here because we’re living in the information age.

With so many paths to choose from, it’s normal for Gen Z to feel lost. Don’t worry too much!

Let me break it down into two main groups:

If you’re a student

Stay in school, dropping out like Bill Gates isn’t the best plan for everyone!

Keep up with your schoolwork.

However, Start by researching jobs that offer both good income and align with your passions, like dental hygienist or ultrasound tech. This job should combine two factors: good income and passion.

If you’re not sure where to start, here are some high-paying jobs:

• Dental hygienist
• Flight attendant
• Medical assistant
• Ultrasound tech
• Anesthesiologist

There are plenty more! Check out this detailed 69+ Highest Paying Jobs List in the U.S. for more ideas on high-paying careers that might suit you. But don’t let the numbers fool you. Make sure to balance a good income with your passion.

If you’re already working

Congratulations! You’re not unemployed. The next step is to increase your income.

If you’re in high-paying fields like medicine or law, you can skip this step. However, if your income isn’t that high, your next move should be to learn a high-income skills.

Because right after that, you’ll need a side hustle to boost your earnings.

Why start a business?

If you’ve made it through the first two stages, you’re halfway there!

Now, scroll back up and read the definition of passive income again.

Not having to do anything while money flows into your pocket?

That’s when you expand from a solo entrepreneur to a business owner. And I’m not just talking about a business in the legal sense. I mean building a real team that works for you.

Got questions or want to share your own experiences with building passive income? Drop a comment below, I’d love to hear from you!