How have I figured out my earning potentials?
When I started looking into different income streams, one of the biggest things that helped me was breaking down what I could earn into specific groups. I identified six different earning tracks that came up again and again in my research, and I have been working on it till today:
- Earned income: the money you make from your primary job, don’t quit your day job until you other income streams can replace your earned income. Or maybe you just love working no harm just continuing right!
- Business income: if you have a part-time job, side hustle, or your own small business, this is a secondary stream of income. I always encourage a side hustle that involves your interest and figuring out how to monetize it at your own pace.
- Interest income: putting your money into a high-interest savings account can provide you with this stream of income. Is your savings fully utilized in an interest income, you need to review it yearly with raising inflation rate!
- Dividend income: money you earn by investing. Once you cleared your 6 months emergency fund savings. You are ready to put some money to work harder in some REITS or good dividend paying companies.
- Rental income: owning a property that provides you with an additional income. Nowadays this can be tough with a bad rental market. But shop around of some good REITS income that pays some good yields up to 5 to 6% per annum and look for good, undervalued property to buy to build this income over the long term.
- Capital gains: making money from selling your investments or properties. Once it a while check your unit trust and investments, if it’s at its high take some profit off the table. Then look around to see how best to use the gains to work on your other income streams.
LIC Editor
Learning Investors Community – Series 3
Sources: https://www.prosperus.asia/sg-market/3-top-singapore-reits-to-buy-in-2022/