If you have extra cash on hand, one of the easiest ways to generate passive income is investing your money. There are many investment options to choose from, but one of the preferred options is investing in stocks. Depending on your risk tolerance level, you may invest in low-risk dividend-paying stocks, value stocks, or even invest in high-growth high-risk stocks. Inflation averaged over 3.05% yearly since 1926, and keeping your money in a Bank savings account would have earned you less than the inflation. Stocks have returned an average of 11.35% per year during the same period, while bonds returned 5.12%, and T-bill averaged 3.79%. There are risks associated with stock investment, so you must do your homework before deciding on your investment strategy.
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