How can one develops his or her sense of humor :
1. Ability to laugh at self
It's amazing how genuinely funny self-deprecatory jokes can be. If you're a serious brooding person who thinks that you're better than the world, forget this genre. But you'll be losing a lot.
2. Being able to take things lightly
This is the foundation from which you can take off into the world of humour. If you usually get worked up over every single little thing, chances are you're going to struggle to crack a joke. Let's face it; you'll be in no mood to think of anything funny.
3. Enjoy being the cause of laughter
Almost every single funny person I've ever met has this trait. There's a certain pride and selflessness that's part of being able to make people laugh. When you get addicted to that 'high', you'll be digging out every opportunity to make people laugh. There're not too many better things in the world than seeing people around you uncontrollably laughing at something funny you said.
4. Educate yourself
The lesser topics you know, the lesser genres of humour you can explore. There's a reason why all people with a great sense of humour are informed and intelligent. It takes much exposure to the outside world to be able to make most jokes. If you're a quiet, silent guy, who likes to shield himself in the darkness of your room, you won't have too much room to play with. Literally.
5. Learn from the experts
Watch humorous movies. Watch stand-up comedies. Watch funny soaps. The trick is not to watch with the ulterior motive of trying to learn the art. I always tell people who want to learn English to avoid watching films with that motive in the back of their head. It's when you truly immerse yourself and enjoy something that your mind automatically picks up certain things. This way, the whole exercise also stops seeming like work.
6. Enjoy conversations and experiment
Face it, you can't say a joke if you don't enjoy conversations. Learn to be open-minded, and talk and listen to people. The more you talk, the better you'll get at it. Similarly, the more you joke, the more you'll discover your area of strength. Experiment. Try various genres. Word play, sarcasm, slapstick ... you'll figure out based on people's reactions what your strength is. The more you play, the better you'll get. Also, remember: There aren't too many things in the world that you cannot joke about.
7. Timing: Strike when the time is right. You need to know when is the opportune moment to unleash the humor Kraken.
8. Quick thinking and Wordplay: "Most important part of English language are punctuations. They are the ones which differentiate 'I helped Uncle Jack, off a horse' from 'I helped Uncle jack off a horse'".
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