I agree with Naeem. Do some research in companies that you believe in, and invest in them. Invest directly or through good growth stock mutual funds. A gradual increase in your saved money every year will start generate that passive income that people talk about.

The stock market's average since inception has been around 11.5%. For example, if you were to have $500k saved up, and you are earning 11.5% annually that could yield $57,500 (500k x .115) which would be considered passive income.