10 Ways to Make Passive Income While You Queue for Kaya Toast

As we age, our ability to work may decline due to health issues, retirement, or other factors. That's why building a passive income stream is so important. 

Passive income can provide a financial cushion, allowing you to maintain your lifestyle without relying solely on your savings.

Imagine having a steady stream of income coming in, regardless of whether you're working or not. This can give you peace of mind and the freedom to pursue your passions without financial worries.

What is Passive Income?

Think of passive income as a financial safety net. It's money that keeps coming in, even when you're not actively involved. 

This can be a game-changer, especially for those looking to retire early or simply increase their monthly income.

10 Ways to Create Passive Income

1. Property Rental: One of the most popular ways to generate passive income in Singapore is by renting out property. Whether it's a condo, HDB flat, or commercial space, rental income can be a significant source of passive income. You can check out what are the rental rates for your property on propertyguru website.

Link: https://www.propertyguru.com.sg/

2. Car Rental: If you own a car, consider renting it out when you're not using it. Platforms like Gojek and GrabCar can help you connect with potential renters. Other platform includes Drive lah and Tribecar where you can rent out your car, and make some extra money.

Link: https://www.drivelah.sg/drive-lah-grab-host-your-car

Link: https://www.tribecar.com/tribeshare

3. Bonds: Bonds are essentially loans you give to governments or corporations. In return, you receive regular interest payments. 

There is the Singapore Savings Bonds that are safe and flexible, offer individual investors increasing returns over time, with the added benefit of penalty-free redemption in any month.

Link: https://www.mas.gov.sg/bonds-and-bills/singapore-savings-bonds

4. Fixed Deposits: Fixed deposits offer a guaranteed rate of return for a fixed period. While the returns may not be as high as other investments, they're a relatively safe option.

Alternatively you can consider Chocolate Finance which is a cash management account that I use personally. They offer 4.2% p.a. returns on first S$20k with them. 

The returns are given daily and one can withdraw anytime. Do make sure to take note of the risks involved. 

You can check it out and sign up with my invite link: https://share.chocolate.app/nxW9/y321ds2r

Link: https://share.chocolate.app/nxW9/y321ds2r

5. REITs (Real Estate Investment Trusts): REITs are companies that invest in real estate properties. By investing in REITs, you can indirectly own a portion of real estate without the hassle of property management. Some of the REITs in Singapore include CapitaLand Integrated Commercial Trust and Mapletree Industrial Trust. 

6. ETFs (Exchange-Traded Funds): ETFs are investment funds that track a specific index or asset class. They offer diversification and can be a great way to invest in a variety of assets.

Dividend ETFs provide passive income by investing in a basket of stocks that pay dividends. These ETFs are designed to track an index composed of companies known for their consistent dividend payouts. When the underlying companies distribute dividends, the ETF receives these payments and then passes them on to its investors.

7. Dividend Stocks: Dividend stocks are companies that pay out a portion of their profits to shareholders. This is a great way to generate regular income.

Singapore boasts a thriving stock market with many companies that pay dividends. Here are a few examples: 

DBS Group Holdings: One of Singapore's largest banks, DBS is known for its consistent dividend payouts. 

Singapore Telecommunications (Singtel): A leading telecommunications company that has a history of paying dividends.

I personally use FSM platform to invest in Dividend Stocks

Link: https://secure.fundsupermart.com/fsmone/signup/personal/P0375989

8. Index Funds: Index funds track a specific market index, such as the Straits Times Index (STI). They offer low-cost diversification and can be a great long-term investment. If the underlying stocks in the STI pay dividends, you will receive dividend distributions from the fund.

9. Income Funds: Income funds invest in assets that generate regular income, such as bonds and dividend-paying stocks.

Personally, I am using Endowus to invest in income funds. 

Endowus Income Funds offer a convenient way to invest in a diversified portfolio of income-generating assets. These funds typically invest in a mix of stocks, bonds, and other fixed-income securities that aim to provide regular income. 

Link: https://endowus.com/invite?code=QFMWH

10. Annuities: An annuity is a financial product that provides regular payments for a fixed period. It's often used as a retirement income source.

Personally I have an annuity from Singlife which is the Singlife Flexi Life Income II. It gives yearly cash payouts, is 100% Capital guaranteed, and I can choose when to start receiving cash payouts.

Link: https://singlife.com/en/savings/flexi-life-income-ii

Conclusion

Building a passive income stream takes time and effort, but the rewards can be substantial. By exploring these 10 strategies, you can start on your journey to financial freedom. 

Remember, it's important to diversify your investments and consult with a financial advisor to find the best approach for your individual circumstances.

If you are looking for a financial advisor, I can refer to you the financial advisors I work with. These financial advisors are people whom I personally have used their service before. Feel free to contact me if you want me to refer them to you.

You can contact me via telegram at https://t.me/Justbeingernest