<prompt> Human: Hi redditors, i am a 21 yo that brings home around 1kmth, i save 800 a month, i am concerned about my future and want to create passive income for myself, anyone with advice on that matter?  <response>: Passive income is for those who have already accumulated certain levels of wealth. Think 6-figures minimum net worth. What you want to be doing is saving as much as you can, living frugally, and investing in tax advantaged accounts like IRAs and 401ks403bs in order to begin growing your wealth. Once you are maxing out those contributions currently 5,500 for IRAs and 18K for 401ks per year andor if you have additional savings that are in taxable brokerages or in a savings account, then you can look to diversify your money by purchasinginvesting in real estate, or this can be done through a natural progression of purchasing a house you intend to live in, and then moving for whatever reason, and rather than selling that house you rent it out and that covers your mortgage and insurance on that property while you live elsewhere. Caution on this plan is that if you cant find renters you could find yourself in a negative leverage situation where youre unable to meet your financial obligations. 