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1- Create sources of passive income. Passive sources income are investments that create income with little involvement and time from you. This could be royalties from publishing a book, a song, or a piece of art, profits from a business partnership where you are a silent investor, or income from rental properties.
2- Purchase stocks and bonds. A stock represents a stake in a company. When you own a share of a stock, you are a part owner in the company and have a claim on every asset and every penny in the company's earnings.[6] A bond is a financial IOU from a company or the government. Companies and governments issue bonds to fund their day-to-day operations or to finance specific projects.
3- Consider investing in penny stocks. Penny stocks are publicly-traded stocks that have a very low price per share, usually under five dollars and sometimes less than a dollar. They are often issued by small, less established companies and can be purchased very cheaply. However, penny stocks can be risky investments because they are not traded on the major exchanges (NASDAQ or the NYSE) and it may be difficult to trade them once you purchase them.
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