Imagine having a steady stream of income even if you’re not working, and you don’t even have to put in too much effort in getting it started…
Sounds good, right?
You’re not alone in wanting to generate more income, whether it’s for long-term goals like retirement or short-term goals like going on a holiday or buying the latest gadget.
I mean, if you still earn money while you’re sleeping, isn’t it even better?
But is it really that easy?
Why isn’t everyone super-duper rich if that’s the case?
$500,000 looks pretty impressive, right?
Even if you’ve managed to build a super impressive portfolio with 8% dividend yield, you’ll only be getting about $37,000 in dividends per year.
If you wanted your passive income to replace your active income, a.k.a. your salary, well, that’s only $3,080 per month, which is way lower than the median monthly salary in Singapore.
Just like The Marshmallow said, $100k is not even enough for the downpayment, unfortunately…
But if you still want to give this method a shot, you’ve got to be earning at least $7,288 per month to finance the condominium.
In the ideal world, promotions come together with your contributions to the company.
But that’s not always the case…
Asking for a pay raise or a promotion isn’t always the easiest task in life, but there are some steps you can take to increase your odds.
If you think it’s not time to ask for one yet, you can always utilise resources like SkillsFuture to learn a new skill that can be put to good use at work.
Once you start earning a comfortable amount, you might find that your expenses will not make up 50% of your salary, according to the 50/30/20 salary allocation rule.
I think you’re going to roll your eyes at me, but you don’t have to spend it all!
Even though others might rejoice at the fact that they have more money to splurge on themselves, it’s okay to channel the rest of the money meant for your expenses to build up more savings or invest more.
Source: all comics by The Woke Salaryman
Seedly Guest Contributor: The Woke Salaryman
For this series of comics that are related to all things personal finance, the Seedly team worked closely with The Woke Salaryman, to bring you useful sh*t which you can apply to your everyday life.
The Woke Salaryman is the brainchild of a Singapore-based duo that aims to help people reach financial independence early. It is the quintessential page for people living in Singapore who earn a median salary of $4,500 and didn’t inherit their fortunes from their parents.
If you have any questions with regard to personal finance and retiring early, feel free to discuss them with the Seedly Community here.
Read other comics by The Woke Salaryman:
- The Three Levels Of Responding To The PMD Ban
- What Most 20-Somethings Don’t Get About Investing
- Recessions Are Like Winter…
- Why The Woke Salaryman Is Shamelessly Downgrading…
- Why Travel By Bicycle – The Most Painful Way Possible
- Rich People Problems
- Common Singaporeans’ Saving Goals, Ranked By Feasibility
- You Will Inherit NOTHING
- The Only 5Cs That Matter In 2019
- Driving Grab Is Not Substitute For A Long-Term Career