Hey anonymous,
I have written about this before so maybe I can help give abit of insight here :) I’m also like you on track to FI, one day at a time, with the right mindset and weath machine setup.
Take a look at this image here. Understand and digest it well:
I will choose to focus more on the right side portion - Income Generating Assets (IGA) so the idea as you accumulate your wealth is to attempt to deploy as much here.
STEP: Income Generating Assets
Basically this will be the main bucket to grow your ‘passive income’ overtime. Which will ultimately help you reach financial independence. The most important bucket*. Simply because there are many ways to grow this.
Low effort:
Dividend paying stocks – Basically some stocks termed as blue-chips offer stable dividends to shareholders (eg SingTel, Starhub, M1 telco stocks)
REITs – Real Estate Investment Trusts. A special class of stocks which are high dividend paying around 5 to 10% p.a basically because of the way they are structured
High effort:
Own your own business – Be your own boss. This sounds alot easier than it seems, but can start with something like Dropshipping as a home business (high effort)
Real Estate – This one can also be tough but potentially very high returns (via capital gains) and also Rental yield (2 – 3% yearly) Expensive to get in but in Singapore, it’s almost a sure-win in the long run (due to constraints on land)
Royalties – This is the next level, if you may have found a niche or brand in a certain area which others find value in. Take years of grinding and hustling to get here.
Read the full article here: https://blog.seedly.sg/financial-independence-f...
Hey anonymous,
I have written about this before so maybe I can help give abit of insight here :) I’m also like you on track to FI, one day at a time, with the right mindset and weath machine setup.
Take a look at this image here. Understand and digest it well:
I will choose to focus more on the right side portion - Income Generating Assets (IGA) so the idea as you accumulate your wealth is to attempt to deploy as much here.
STEP: Income Generating Assets
Basically this will be the main bucket to grow your ‘passive income’ overtime. Which will ultimately help you reach financial independence. The most important bucket*. Simply because there are many ways to grow this.
Low effort:
Dividend paying stocks – Basically some stocks termed as blue-chips offer stable dividends to shareholders (eg SingTel, Starhub, M1 telco stocks)
REITs – Real Estate Investment Trusts. A special class of stocks which are high dividend paying around 5 to 10% p.a basically because of the way they are structured
High effort:
Own your own business – Be your own boss. This sounds alot easier than it seems, but can start with something like Dropshipping as a home business (high effort)
Real Estate – This one can also be tough but potentially very high returns (via capital gains) and also Rental yield (2 – 3% yearly) Expensive to get in but in Singapore, it’s almost a sure-win in the long run (due to constraints on land)
Royalties – This is the next level, if you may have found a niche or brand in a certain area which others find value in. Take years of grinding and hustling to get here.
Read the full article here: https://blog.seedly.sg/financial-independence-f...