Earning Passive Income

Earning Passive Income

Although this website is about Simple Investing Approach. However, our ultimate aim is to achieve a financial freedom lifestyle.

Therefore, I'm going to show you besides investing, there are also various ways to earn passive income:

1. Savings accounts: Literally you can earn interest on savings. However, in order to see much return from this method, it typically requires a big amount. One con side of this method is, as it is too easy to access the money in the savings accounts, it requires high discipline to generate a consistent return from it.
2. Rent From A House Or Spare Room: This method can provide individuals with a regular source of passive income (Learn more about real estate here).
3. Blogging: Write on popular topics that you are passionate about and monetized it in various ways such as via Adsense, affiliate marketing or promote services or even products like CB Passive that show others how to create online passive income)
4. Online Market Places: Car boot sales and auctions can raise funds by selling unwanted items.
5. Royalty Payments: Earn your royalty via photography, writing such as eBook or other creative work.
6. Focus And Market Research Groups: Pay individuals to trial new products.

Above are some ways I have learned and share with you via this post. I sincerely hope that you gain some value out from it. Do you have other ways to create passive income? Please share your methods via comments below:

The FIRE Movement

What is FIRE all about?

Simply put, FIRE stands for Financial Independence, Retire Early.

Majority of the people work from 9am - 5pm until they are 65 years old. By the time they retired, they probably feel old and frail and likely broke at the same time!

So what are the solutions?!!! You might asked furiously. Probably you have been looking for the answer for many years and to no avail!

Well, the truth here is you need to gain your Financial Independence!

What does Financial Independence truly means? Well, it simply means that you no longer need to depend on paid employment to stay alive!

"How do you do that? I still need to pay my bills and living expenses!" You shouted out......
I know, I know....... I have been through what you are going through now. It was very stressed out especially when we really go dig out the dollar and cents on where our money goes to.

But still, you got to do it! The easiest way to do is to go find out where did all your expenses goes to and how to reduce it optimally. Then find ways to increase your income (especially passive income! which could be in the form of real estates or stocks etc)

Till the point where your passive income exceeded your living expenses, you will achieve your FREEDOM!

Rule of 72

Rule of 72

Einstein ever said "Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it."

So what as it got to do with Rule 72?

Well, the rule of 72 tell you exactly how many year it takes for you to double your wealth!

For example, if you bought an investment class that gives you 8% return per annum. Using the rule of 72, just use 72 divided by 8, it will takes 9 years for you to double your return simply by reinvesting your 8% return!

So how can we reinvest our returns at zero or no cost?

The video below will explains one of the ways to reinvest your dividends from the stock markets.

Global Rich List

How Rich Are You?

Most people already know how to retire immediately. However, why is it that most people don't retire as soon as they want?

Well, the quick answer to that is because of ENVY! 

Because we are constantly comparing ourselves with others. We always want a car or house which is bigger than our neighbours etc.

But, do you know that if you are living in a developed country, most likely you are "wealth" better off than more than 50% of the world.

So, if you want to know how rich you are as comparing to the world, just input some details over HERE.

You can also watch the video HERE.

Low Cost Index Funds

Why low cost index funds?

The two main reasons why each and every individual who know nuts about investment should invest in a low cost index funds are:

1. They are inexpensive
2. They aren't tied to the success of one single entity

If you do not understand what both of these reasons mean, let me explain.

First of all, if you invest in a low cost index funds, meaning their upfront fee or sale charges are low (usually not more than 1%) and invest them on a regular basis due to the law of dollar cost averaging, then you will incur a super duper low cost in your investment.

Secondly, index funds are invested in not just one single listed company but at least more than 10 of those. Therefore, it creates a wide diversification in your investment thus protecting your risks etc. Not only that, it is also adjusted on a regular basis (about once every quarter) to make sure quality companies are inside the index funds.

How to invest in a low cost index funds?

Watch "How to do a regular investment plan" to find out more!

What To Look For In An Investment?

Investment is NOT risky!

Most of the time, when people hear about the word "INVESTMENT",  first word that goes into their mind is "RISK".

However, one of the most famous quote by Warren Buffett is "Risk comes from not knowing what you are doing!"


Easier said than done! How do we know that we already knew about the risk we are getting into?

Well, let me share with you 2 simple factors that I look for in an investment:

1. Does this investment gives me capital gain in the long run?
2. Does this investment gives me cash flow?

I shall further elaborate to you on this 2 factors:

Capital gain in the long run

Due to the scarcity of resources (i.e limited of land in the example for real estate investments), we know that over a long period of time, prices for properties will appreciate.

Therefore, in the long run very likely you will enjoy capital gain for your real estate investment as well as stocks if you buy them at the right price.

Cash flow from investment

While waiting for your capital to goes up 2x, 5x or even 10x, you need cash flow too!

For example, if you bought houses and rented them out, you will have cash flow in the form of rental. If you bought equities and hold them, you will have cash flow in the form of dividends!

So, when both of these investment becomes over-valued due to market's sentiments (nobody knows when though), not only you get to keep the cash flow that you have collected over the years, you get to enjoy your 2x or up to 10x capital gain from your original capital investment!

Otherwise, you would also be far better off if you choose to reinvest those cash flow!

How You Can Retire Immediately

Do you know that you can retire immediately?

Contrary to popular belief, not necessary you need to be "old enough" to retire.

When I said old enough, usually people will think of by the age of 55, 62, 65, 70, 80, 90 etc

All these numbers are the official retirement age in all over the world.

So, if you can retire young, would you still choose to retire old?

Certainly not! Everyone wants to retire young. Who wants to travel the world when they are old and frail?

Well, if you desire to retire young and strong, please continue to read on and I will show you the way.........

How to retire young?

If you have been investing for quite sometimes, by now you should know that listed companies that pay dividend usually pay in the mode of certain frequency, i.e yearly, semi-annually, or quarterly.

If I can share with you a way that you can have your salary every few days instead of once a month, would you believe?

Well, I know you wouldn't. 

But still, I will let the cat out of the bag.

And here is the formula:

Invest in 30 companies that pay quarterly dividend (do take note to invest in the right company at the right price).

If you do so, one year you will get paid 30 x 4 = 120 days!

We all know that there are 365 days in a given year. Therefore, roughly every 3 days (365 divided by 120) you will get paid once!

Isn't that simple?

Yes! It is that simple! Most people think too much and procrastinated for way too long and that is one of the reason why they couldn't retire early!

And if you know how compounding works, you will know that the longer you take action, the longer you will take to retire.

So, take action now and retire immediately!

Should I Invest In Bitcoin?

"Bitcoin value should goes up to $10,000 in 2018! You gotta buy it now!", said one of my friend.

"How do you know?"

"Well, it was only a few hundreds few years go, therefore, according to the chart or trend, the price should be around there by 2018!", exclaimed my friend.

So should we buy bitcoin now? (Watch my video here and understand my perspective!)

While most people are buying this cryptocurrency now, my contrarian mode immediately was turned on. Perhaps its now the moment for me to find ways to short this "currency" now.

Probably now its the moment for transferring of wealth from the ignorance to the well-informed ones........

Do I have bitcoin? Of cos I do! But I get it for FREE! (Watch how I get my bitcoin for FREE here!)

So should you invest in Bitcoin? Well, if you have read my previous posting quite sometimes ago, the answer is pretty obvious!

How to Accumulate Wealth

How to accumulate wealth?

Most people know how to make more money, i.e they can choose to drive uber after their office hours, or find additional jobs for additional income.

However, not many people truly understand how to accumulate wealth.
So why wealth accumulation is so important? ( find out more about wealth planning model here)

The main reason is because you want to have more time; wealth is a measurement of time and being rich monetarily is a measurement of dollars and cents.

We only have limited of time and we have unlimited of money, we shouldn't be trading our time away for money! We should deploy our money to work harder for us!

Therefore, one thing you must remember is that wealth accumulation is not about how much you can earn, but rather, how much you can save and retain that wealth.

The Importance Of Rebalancing

Why is it important to rebalance your portfolio?

Assuming you bought your share at $1 which gave you 5% dividend yield. After few months, the stock went up to $2. 

What's your dividend yield now?

If you have followed through this blog, you would know that now the dividend yield becomes 2.5%. Simple math right?

So if you choose not to rebalance by selling partial or all of your shares, not only you wouldn't be able to grow your portfolio, you would only have paper gain of that $1 ($2-$1).

And certainly, market tends to be a "weighing machine" in the long run. Your $2 worth of shares might soon becomes $1.50 or even half of your initial purchased price, $0.50.

What should I do?

• Rebalance it - You can choose to sell half or all of your shares at $2 and use the proceeds to buy another counter which gives you more than 5% dividend yields (Assuming your desire dividend yield is 5%)

• Sell and wait - If there are no better opportunity, you can choose to sell at $2 (ultimately you already doubled your return, don't be greedy to wait till $3 or $4) and hold cash to wait for better opportunities.