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Friday, December 5, 2008

My thoughts on Passive Income

Why create passive income?
Creating a passive income source helps us leverage our earnings per unit time better. It also contributes an additional stream of income for us.

Passive income is generated when you are earning an income without having to do much work for it. There are a few types of passive income.

1) Private Business
If you own a business that you have setup to run completely on its own, or perhaps a piece of real estate that generates capital or rental returns, it is a good source of passive income.

2) Investments
Shares of companies that pay annual dividends (like Singapore Press Holdings), or shares of REITS, are sources of passive income.

Capital appreciation can also be considered a form of passive income, but until you sell the stocks and lock in your profits, the money is still not yours.

3) Fixed Deposits / Money Market Fund
Guaranteed zero risks low rates way to grow the numerical value of your money. You lose out to inflation.

4) Blogs
Placing advertisements or affliate marketing is a great way for blogs or websites to generate passive income. Wonderful examples include Yaro Starak and John Chow.

5) Intellectual Property
Write a book or an ebook. Everytime it is sold, you get paid. Great source of income that recurs even though you had only spent the time to write it just once.


For me, I have applied 2), 3), and 4) in my quest for financial freedom. An example would be my dividends coming from SPH (total of $760) this december, and looking at a possible 6~7% yearly dividend rate for my average purchase price in 2009.

I have quite an amount in Fixed Deposits and MMFs. Blogs wise, I have ExamWorld and WealthBuch, with ExamWorld earning a few bucks monthly at the moment.

I would love to have 5) in my portfolio as well, but what I would really really really want to have is number 1). Guess it's time to whip myself up further to generate some new ideas to startup for 1).

5 comments:

  1. PLEASE READ!!Hello Guys!!! I am Caro I live in Ohio USA I’m 32 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.com

    ReplyDelete
  2. PLEASE READ!!!Hello Guys!!! I am Sharon I live in Ohio USA I’m 37 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.com

    ReplyDelete
  3. PLEASE READ!!!Hello Guys!!! I am Sharon I live in Ohio USA I’m 37 Years old, am so happy I got my blank ATM card from Adriano. My blank ATM card can withdraw $4,000 daily. I got it from Him last week and now I have withdrawn about $10,000 for free. The blank ATM withdraws money from any ATM machines and there is no name on it because it is blank just your PIN will be on it, it is not traceable and now I have money for business, shopping and enough money for me and my family to live on.I am really glad and happy i met Adriano because I met Five persons before him and they could not help me. But am happy now Adriano sent the card through DHL and I got it in two days. Get your own card from him right now, he is giving it out for small fee to help people even if it is illegal but it helps a lot and no one ever gets caught or traced. I’m happy and grateful to Adriano because he changed my story all of a sudden. The card works in all countries that is the good news Adriano's email address is adrianohackers01@gmail.com

    ReplyDelete
  4. Hello Guys!! I am Belinda. I live in Chicago  USA. I am very excited today and do not know where to start my testimony from. I was a poor woman with 3 kids and find it difficult to pay my bills and feed my kids.My husband left me and the kids for another woman and ever since then we were living in pain and hunger but just few days ago i came across a testimony of a man who got a blank ATM card from Mr.Alexander so i immediately contacted him for the same type of ATM card and i am very happy to announce to the world that i am living a fulfilled life. This blank ATM card can withdraw up to 10,000 dollars and more daily without you having any account with any bank. I have been able to buy a house and start my own business with this blank ATM card. Are you poor and need help then contact him now. Mr.Alexander email address is alexanderhackers01@gmail.com

    ReplyDelete
  5. Hello Guys!! I am Belinda. I live in Chicago  USA. I am very excited today and do not know where to start my testimony from. I was a poor woman with 3 kids and find it difficult to pay my bills and feed my kids.My husband left me and the kids for another woman and ever since then we were living in pain and hunger but just few days ago i came across a testimony of a man who got a blank ATM card from Mr.Alexander so i immediately contacted him for the same type of ATM card and i am very happy to announce to the world that i am living a fulfilled life. This blank ATM card can withdraw up to 10,000 dollars and more daily without you having any account with any bank. I have been able to buy a house and start my own business with this blank ATM card. Are you poor and need help then contact him now. Mr.Alexander email address is alexanderhackers01@gmail.com

    ReplyDelete

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