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.
This article first appeared on The Woke Salaryman and is part of a content syndication agreement between The Woke Salaryman and Seedly.
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