The stock market is about the best way to do it, as rental properties can be a hassle. Would you like renters to be calling you at all times to fix the plumbing?

Jeff

Stay away from Cash Create and other survey Web sites!

It’s a waste of time and will cause you unhappiness.

If you choose to get suckered in and sign up to take surveys and receive free trials considered you were warned. The minute you give them your credit card and personal information you have now opened your computer to unwanted cookies on your hard drive, annoying pop-up windows and if you are on a PC you open your computer to viruses that can wipe you out.

Dividends.

Instead of talking theory, I will explain exactly how you can do this. Open a Roth IRA account. Deposit $4000 a year into the account. Invest the deposited money into a diversified portfolio of equity investments. Historically equity investments have returned about 10% annually and some much more 14%. Assuming 10% average annual return in 35 years your account will contain over $1,000,000 and it will be earning a passive income of $100,000 on average annually.

Now here is the best part. Because it is in a Roth IRA account all that money will be tax free. WOW.

There’s lots of ways. Interest income is passive. Stock gains and dividends are passive. Bond interest is passive. Investing in a private business could be as well.

Major note: Avoid debt. So many people think it’s a great idea to have 10K in the bank earning 2% while they owe $5K on credit cards at 22%.

Sounds like you’re fairly young. Max out any 401K match from your employer, then start looking at other investments. No-load mutual funds and index funds are a good place to get started.