Asked on 03 Jan 2020
What are the best side hustles for teenagers to earn passive income? should we start investing young? or should we be focusing on our studies instead of making money?
Interestingly enough, my answer differs from everyone, I would advise you to get started. Warren Buffett's greatest regret is to not have started earlier. You can go read up on the rule of 72, compounded returns on investments. I think there are enough reasons why you should get started. HOWEVER don't invest blindly. Make sure you set aside funds for rainy days. Do one's homework, equip yourself with the relevant knowledge of the various investment vehicles, asset classes and how the market works.
I started since I was 18 and I think investing has not only gave me a stream of passive income but also taught me a lot about the world too. It really does force one to keep up with the happenings around the world and in turn made me a more resourceful and knowledgeable person.
If you're doing part-time jobs, try using Regular Saving Plans where the theory of Dollar-cost averaging is applied. This way, you don't require a lump-sum to invest and you get to enjoy decent passive income at a lower risk of capital fluctuations
Don’t get caught up with the idea of passive income. In order to get good passive income, there are a lot of work to be done. Sometimes, getting an active income might be easier. Passive income is a long game that you have to play to get paid so focus on acquiring good skillsets like video editing, copywriting.
Shengshi Chiam, CFA, Personal Finance Lead at Endowus
Answered on 06 Jan 2020
Just to share, I do not like to handle dividends because there are transactional cost associated with reinvestments.
When I invested in REITs in the past, I was tempted to take up the Dividend Reinvestment Plan (DRIP) instead of taking "passive income" because I wanted to stay invested and not spend on brokerage charges. I did not actually like that option because I ended up with odd lots.
I do understand the feel good factor about getting "passive income" though. Just dont be too passive about it because REITs and stocks may need more effort and understanding!
Wong Ming Yao, Product and Community Associate at 8VIC Global Pte Ltd
Answered on 04 Jan 2020
I agree with Hariz's answer to picking up high value skillset! When you are young, you should start by learning some of the skillset that will be in demand first!
Focus on mastery when you are young and you will have the capital to start investing for your passive income!
A teenager should focus on active income and picking up skills instead of passive income. Try your hands on digital marketing, affiliate marketing, coding, just to name a few.
You need a sizeable capital to have decent passive income and you should be reinvesting any dividends at your age as well to have compounded growth.
Presley Soh, Retail and E-commerce at ITE College Central
Answered on 31 Jan 2020
Assuming that you are a ordinary teenager working part time, i would recommend you to attend some free courses (although those gurus will sell you their course at the end of the event) regarding investment. Allocate your salary wisely, save most of your salary and once it reach a significant amount, you can use it to invest in stocks, reits, etfs etc.
Set up a youtube channel, instagram channel, tik tok or whatever is the social media that teens use these days.
One thing I admire about teens now is they are really good at social media. I have been seeing alot of youngsters doing their own youtube videos of literally anything.
For me, too shy to do such social media but teens these days really very good at videoing and selfie themselves.
Passive income is a concept that I dislike.
Passive Income involves building an asset (or you can buy one) that generates money for you.
One example of an asset is a business, mine is a marketplace style where I match freelancers to businesses.
I make roughly $500 a month, from my business and my investments. Is it possible? Sure, definitely. But it’s not really passive.
Let’s look at investments. When talking about passive income and investments, investments is simply buying an asset instead of building it. As a teenager, you likely don’t have the resources required to buy assets that can generate stable recurring income.
Instead, you build. To me, it is way more efficient to work hard for active income, then invest that. This is compared to working hard to build a business.
Then you’ll ask, didn’t you build your own business?
Yeah, it took me 2 years, $4,000, and I barely made good money on that investments (without counting my hard work).
Instead, look at how high you can push your active income, and invest that wealth to generate income.
Beside learning academic/soft skills at school, you can start saving/investing with your small amount of money first so that you will be able to understand how money can work for you.
For example, you can start investing small chunk of money into Stashaway every month. My sister is currently is studying Secondary school but she already started her journey with 30 bucks a month into Stashaway (I help her to transfer into a separate goal inside my account). After 10, 20 years, you will thank yourself because you started saving/investing early
Personally I would think it's a necessity to do both even thou the focus should still be a solid education in a traditional sense.
The advent of digital technology and plethora of media with differing genres will require both intellect and sensibility from our generation Z.
I suggest getting some experience (as it is often called: real-world experience) that will let you develop some skills and also know which of your skills are marketable.
Use this experience to take on side hustles. A friend I know likes bakeries and coffee - went on to become a barista (and a good one at that).
You can them use the experience from your hustles to help others. My friend is now looking at teaching and selling coffee - something that puts her closer to passive income.
How old are you? Good to start young, but better to have a strong foundation!
You are likely at the age of exploring future career paths, options, studying full-time.
Do not be in a rush to earn passive income. While having a constant flow of money is essential and important, you should think bigger for future sake.
If you are cash tight at the moment, you can explore options such as giving tuition.
Agree with the rest. Don't be in a rush to earn passive income now. While you are young and your brain is more active, pick up the skillsets that you can use to increase your income! With an increased income, you'll have more to put into investments in future, and earn passive income at a faster rate!
It depends on your interest and how you maximise the potential of it, e.g. stock photography, ad-sense from social media, royalty from writing books.
Here is everything about me and what I do best.