Monday, September 14, 2015

Passive Incomes

Recently I was busy with my house stuff. Yes, owning a place I call home.
After ste down with 'homes' now again, I am searching how can I increase my passive $.
As usual, I will start to ask my best friend "google".
Read afew articles and I am quite surprise to find that some articles/ blog started to list out credit card cash rebate and air mile earning from credit card as passive income.
MY definition for passive income looks slight different from those articles. For me, the cash rebates and mileage is part of daily saving stuff but not passive income. You cant have early retirement with that. You have to spend in order to get that 1%-2%rebates. So i went to google again, ask to define the word "passive income". Here is what I get: " passive income is an income received on a regular basis with little effort required to maintain it ." Hmm, this sounds confusing. so I google againand found the definition from investopedia.com "Earning an individual derives froma rental property, limited parnershipor other enterprise.in whichhe or she is notmaterially involved."  This sounds more relevant which my understanding.
For me, l Can choose and there is a stable stream of Income flowing in to feed my family andmyself. By spending with my credit card and getting that tiny of cash rebates cannot support me financially but putting myself in risk of getting loan from bank.
what is passive incomes ? what consider as passive income?
Example: Renting one of the extra room out . You still have a place to stay, you house loan taking care by your CPF,  the$ you get from rental is an extra . You can use that to pay up your loan So that you can be debt free earlier, or you can buy yourself a gift or use topay utilities etc. Idealy, its always good to use that money for investment,earn yourself more $ instead of spending them. Alwaysremember the power of compound interest.
I hope that no one will treat that rebatefrom credit card as a passive income and in order to get more rebate, they spent more and ended up in bigger rolling debt.
Well, looks like I have to continue searching for others passive income.

Any current monthly passive income=500 (Rental)
still far for away from my target!!!

Happy hunting !

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