Common forms of passive income include real estate investments or silent partnerships in businesses, but it can also be3. Store it in retirement accounts
"The key is to get money in a 401," says Gould."Save as much as possible to have your money work for you tax-efficiently and to get money in the markets. The first bucket outside of the emergency fund is the 401 up to the match [if your employer provides one]. You don't want to give away free money.
Using a credit card might not feel like putting your money to work, but choosing a card with rewards appropriate for your lifestyle means each dollar you spend on your cards is doing double duty. Investing in real estate is two-pronged: You could consider buying a single home to live in to be an investment, or you could invest beyond your home, into land to sell or stores. Branching out beyond your own home"depends on your market and the appetite for rental real estate," Gould says."In most markets, if you can handle the headaches and there's room, it's an option.