I am currently serving NS, saved up money and will probably save more by working before uni. But once in uni I want to have a stable passive income to pay for things like my bike. Any tips? - Seedly
Seedly logo
Seedly logo
 

Investments

Passive Income

National Service (NS)

Undergraduate

Stocks Discussion

Online Brokerages

Kruptos

Asked on 26 Jun 2020

I am currently serving NS, saved up money and will probably save more by working before uni. But once in uni I want to have a stable passive income to pay for things like my bike. Any tips?

So i have a few investments, including maple tree reits and capitamal (100 units tho very little haha) , and a jump start account. I want to start putting in money per month to set up a passive income so I can pay for the base fee of bike maintenance (200 per months) or smth around that during my upcoming uni years . Any tips on what should I do, lump sum or dca, or anything of that sort. Would love to hear out your more experienced views. Thank you!

0 comments

2 answers

Answer Now

Answers (2)

Sort By

Yang Teng
Yang Teng
Top Contributor

Top Contributor (Aug)

Level 9. God of Wisdom
Answered on 27 Jun 2020

$200 a month would be about $2,400 a year. Given a reasonable 4% yield on investment, you require a portfolio of $60,000. This can either be completely achiveable or not, depending on your financial background.

With a small investment capital. say $1,000, you will need a whopping 20% growth to earn the $200. The easiest way to go about is to work part-time during university and saving up during NS.

During NS, you can make use of IPPT/ATP/CS to gain incentive awards. You can also cut down on mess/canteen/nights-out/ordering in/stay-out/smoking to keep more of your allowance. If you have a long break before start of uni and cannot find a job during the period, you can consider doing a short term contract (3/6 months) where the pay is significantly higher. Meanwhile, you can continue reading up articles online by the various personal finance blogs on how to budget, invest, etc.

During uni, you can look for a job or a part time work, bonus if it is relevant to your field of study. The plus of a part time work is in its flexibility. Assuming a $8/h work, you will need to work 25hrs per month which you can plan in advance. Similarly, do cut down on eating out/drinking/clubs/etc and go for cheaper alternatives.

One last note, I personally wouldn't recommend individual stock investing as it may not be very efficient for most. It is time consuming to research, analyse. order and buy the stocks as compared to index investing. Do check them out in your free time!

1 comment

ūüĎć
0
Kruptos

27 Jun 2020

Wow, this really brought a lot of insight to what I want do moving ahead, I'm going to read more books and research a bit more before investing further, thank you
Thank You!
Can you clarify
I wonder if
This is so helpful ūüĎć
What about
Post
Junior
Junior
Level 5. Genius
Answered on 27 Jun 2020

Hello, I am an NSF too!

Passive income requires quite a lot of upfront work and research. Read some books along the way and you can also look into roboadvisors.

I personally believe in DIY ETF RSP because I get the customisability and I believe that ETFs should form the core of your investments.

If you really want to stock pick, I have some opinions on some decent S-REITS on my blog! (strongandfrugal.com)

0 comments

ūüĎć
0
Thank You!
Can you clarify
I wonder if
This is so helpful ūüĎć
What about
Post