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How to achieve passive income?

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Old 22-05-2020, 02:00 PM   #1
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How to achieve passive income?

Currently 25, and I wish to retire as soon as possible because I don't want to spend my life working miserably for “money" and end up not having enough time for more important stuff like family, and other things like travelling... I would like to start early to achieve this passive income.

I know REITs give good dividend which is a form of passive income but they might also cut it anytime

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Old 22-05-2020, 02:01 PM   #2
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What is your definition of passive income brother
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Old 22-05-2020, 02:04 PM   #3
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What is your definition of passive income brother
Money that comes in without doing anything like dividends
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Old 22-05-2020, 02:10 PM   #4
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Currently 25, and I wish to retire as soon as possible because I don't want to spend my life working miserably for “money" and end up not having enough time for more important stuff like family, and other things like travelling... I would like to start early to achieve this passive income.

I know REITs give good dividend which is a form of passive income but they might also cut it anytime
Then get good at investing to discern which REIT's payouts are sustainable vs those that are not
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Old 22-05-2020, 02:12 PM   #5
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How much money do you have?
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Old 22-05-2020, 02:15 PM   #6
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How much money do you have?
Currently I only have around 20k saved up.
I haven't gotten into any investments yet..

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Old 22-05-2020, 02:21 PM   #7
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Currently I only have around 20k saved up.
I haven't gotten into any investments yet..
When do you plan to stop working and rely on passive income?
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Old 22-05-2020, 02:22 PM   #8
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Currently I only have around 20k saved up.
I haven't gotten into any investments yet..
I saw in a different thread that you say your monthly salary is $1.8k. That's low. And depending on your monthly unavoidable expenses, which will vary greatly depending on the number of dependants you have, this might mean you will never get to retire early, just by using safe dividend based investments, because you can't save much every month.

How are your career growth prospects? Do you have to support anyone? Parents? Future wife and kids? Your best shot might actually be to invest in high risk like forex and equities. You're still young, can afford to take the losses.
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Old 22-05-2020, 02:30 PM   #9
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When you are young, your best asset is yourself. So invest more in yourself, upgrade your day job to get a higher pay. That's the fastest and most efficient rate of return.
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Old 22-05-2020, 02:41 PM   #10
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When you are young, your best asset is yourself. So invest more in yourself, upgrade your day job to get a higher pay. That's the fastest and most efficient rate of return.
the majority of those who retire early, they are mainly retiring on their saved salary rather than profits from stock market trading.

if you hate your job, it is unlikely that you are going to do well in it. as an employer, why would i want to promote anyone who hates his job. find a job that you like to do. If you are allergic to work, then i'm not sure how you are going to get enough money to retire early
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Old 22-05-2020, 02:42 PM   #11
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I saw in a different thread that you say your monthly salary is $1.8k. That's low. And depending on your monthly unavoidable expenses, which will vary greatly depending on the number of dependants you have, this might mean you will never get to retire early, just by using safe dividend based investments, because you can't save much every month.

How are your career growth prospects? Do you have to support anyone? Parents? Future wife and kids? Your best shot might actually be to invest in high risk like forex and equities. You're still young, can afford to take the losses.
My career growth doesn't look good for me as I am only a o level holder with no other certifications. I have to give monthly allowance to my parents. Fortunately, they r still working so I don't have to support them.

I haven't learnt about forex.

Does equity mean buying a stock of a company?

I was thinking of buying airline stocks as their prices have dropped alot now.
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Old 22-05-2020, 02:44 PM   #12
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Passive income takes hard work to achieve. Short of gambling on 4D/toto, speculation or being born into a rich family, the fastest way to get there is to either work damn hard in your early yrs and earn a good salary or to run a successful biz.

No such thing as a free lunch.

It's never too late to start earning passive income. The earlier the better. The more impt qn is, how long it takes for you to reach the end of that journey.
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Old 22-05-2020, 02:50 PM   #13
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I was thinking of buying airline stocks as their prices have dropped alot now.
If you want to make big money on the stock market, you have to take a contrarian view which turns out to be right. When everyone else is selling airline stock, you are the only one buying, if you turn out to be right, you will make $$$ big time. In other words, high risk=high return.

If you simply buy what others are buying, eg: Zoom (the Video conferencing company not the other one lol), you are unlikely to get rich because its a crowded trade.
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Old 22-05-2020, 03:00 PM   #14
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My career growth doesn't look good for me as I am only a o level holder with no other certifications. I have to give monthly allowance to my parents. Fortunately, they r still working so I don't have to support them.

I haven't learnt about forex.

Does equity mean buying a stock of a company?

I was thinking of buying airline stocks as their prices have dropped alot now.
Yeah equity means buying company stocks. But you need to know that it's essentially gambling. Nobody can know for certain which direction the stock market moves.

If your goal is to retire on passive income, some quick maths tells me that you will be generating $1,200/mth in passive income, at age 51, assuming you are able to save $1k/mth every month, and make a steady 3% ROI on your entire savings and investment.

If you can save only $500/mth, you will only hit this benchmark at age 64, at 3% ROI. Age 54 if ROI is 4%. If your savings every month is small, you will need high returns on your entire portfolio to make it to early retirement.
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Old 22-05-2020, 03:00 PM   #15
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If you want to make big money on the stock market, you have to take a contrarian view which turns out to be right. When everyone else is selling airline stock, you are the only one buying, if you turn out to be right, you will make $$$ big time. In other words, high risk=high return.

If you simply buy what others are buying, eg: Zoom (the Video conferencing company not the other one lol), you are unlikely to get rich because its a crowded trade.
But uh, saying this cos TS seems quite new to investing.. If you're looking to buy and hold equity for the long term, do be prepared to see short term ups and downs in your share price. Its a different ballgame from FD and holding cash.

Impt thing is to do your due diligence, and be confident in the potential of what you commit to. Don't panic and sell off at a loss once you see any dips in share price.
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