SG Budget Babe
Asked on 03 Dec 2019
How do you go about generating passive income? I'm looking to get into some low-effort income passive streams. Is it worth the effort? are the results and yields good? can i get a high yield for a low-effort income stream?
Top Contributor (Jan)
I currently have passive income from a portfolio of UTs and dividend paying stocks. The interest on my OCBC savings account takes care of my phone bills, although I don't really look at it too much, it does depend on me actively working in order to be eligible.
I'm focusing on building future income streams in the meantime, from guaranteed income sources, since the variable income source is already rolling along and I'm adding to it regularly through UT RSP and the occasional stock purchase when prices are right. I'm focused on getting my annuities in place, and ensuring my CPF SA will have a decent amount when I turn 55.
Currently my passive income comes from dividend investing in REITS. Though it is not my main focus now.
My main focus now is to build my capital. To increase my capital, i invest in stock market. I work extra hard to make myself more valuable. Such as i go and learn extra skills. So i can get more pay from my job. Then i also try to save more, only spend on necessities.
Once i hit my target for my capital. I would be focusing more on dividend play.
Example: capital of 50k with dividend yield of 6%, you will get 3k annually.
But, with capital of 500k, same yield, you will get 30k.
Basically dividend play is better if you have a larger capital. If not, focus on capital growth would be better 1st.
Results wise for my small dividend portfolio since i started few years back giving me about 8-9% yield per year. If i would have a bigger capital, this would be awesomely great. Then i realised before going into dividend, it is important to have a larger capital.
The another way is you can do DCA on dividend paying stocks. Slowly build up the capital.
I have several shares bought since 20 years ago that have given me good dividends! I am lucky as I didn't monitor them closely but they turned out to be good companies
Investing - either capital gains or dividend yield on stocks
Clearing my stuff on carousell
If you have a decent lump sum it's better to let your money work for you.
Top Contributor (Jan)
Stock photography is one of my favourite! 📸 Not a lot of money, but it is more of a interest.
Here is everything about me and what I do best.