Passive income or sometimes called residual income is smart money because it gives you the freedom to do other things whilst the money stream keeps coming to you. As people often say, you continue to make money whilst you sleep.
Different types of passive income have different characteristics. The typical ones we come across most often are as follows:
Interest from Bank –– it is a good passive source of income. It is also a convenient spot to park your extra cash whilst you decide what investment vehicles to look for.
Dividend income — holding stock (shares) for yield is one of the strategies of good financial planning. In good times in particular, this is an excellent leverage because you can tap into the high-yield blue chips and ride on their extra success easily.
Rental income from properties / other assets — this covers most kind of rentals, from leasing of residential or office premises , to leasing of equipment or machinery, etc. By allowing a small portion for expenditure, you can hire a management office or an agent to take care of everything for you. Potential capital gains on properties is often a sweet added bonus.
Royalties and Patents — income derived in this class are usually relating to “intellectual properties”. Common examples involve professionals like singers, authors, and inventors, etc. If you have special talents, go for it.
Filed under General, passive income by .
I like traveling and I like photography. I have just returned from a holiday trip to Kota Kinabalu in East Malaysia. This picture was taken in one of the islands there. The place is highly recommended.
Traveling on a holiday is fun. However, when you think about it, we really need three things to be able to do it.
We need Time, Money, and Health!
Sometimes, the last one is easily left out because for most of us, health is more like a given. I have a friend whose mother is on dialysis. She has been doing it for a few years now. She said she simply cannot do any travelling because she has to have the treatment three times in a week to get going. I couldn’t imagine what it would be like to be in that situation. She is a very brave lady. Hope there is good news in her recovery.
If we are healthy enough to walk about, but not having enough money or time, what can we do? For most of us, we will settle for a breakaway holiday to break away from the stress and headache life day to day. But, would it be better if we do not need a breakaway, but can have the total freedom to travel anytime we want? Think “passive income” or better still “passive incomes”.
Or, if you can think of anything better, please share your thoughts with us. Cheers.
Filed under General, health, passive income by .
The first time these three words, “Own Your Life”, makes a big impression on me is through the reading of Don Failla’s book “the 45 second presentation that will change your life”. He said,” when you substract the sleeping time, commuting time, working time and things you have to do each and every day of your life, most people don’t have more than one or two hours each day to do what they would like to do — and then would they have the money to do it? …..”
The great irony is that most people don’t even realise that they have quietly given away the control of their life to the surroundings. For most of them, they live a life that is literally “owned” by their boss, their mortgage on the property, the credit card debts, or even their own business(es) they run. And before they know it, the best part of their life is going to be over. I undertstand, because I had been in those situations before.
Filed under General, passive income by .
Recent Comments