7 ways to make passive income - make money work for you even while you sleep
With the cost of living rising, you may wonder how you can increase your monthly income to cope with that. One way you can do it is to create a source of passive income - i.e. making money while you sleep. Too good to be true? Read on to find out more.
What is passive income?
Passive income is money you earn even while you sleep. This can be achieved when you create something like a blog, an online course, videos, etc. that generate money even when you’re not at work or through investments on property, stocks, funds, etc.
Why should I create a passive income?
Most of us trade time for money by working our day job. But it is not always efficient and it will take up a lot of our time. We could have done something else as Warren Buffet is known to say, “If you don’t find a way to make money while you sleep, you will work until you die.” Also, we will all get retired at some point and stop receiving active income. Therefore, it’s important to make your money work for you.
Passive income ideas: How to make passive income in Hong Kong?
1. Investing in Stocks
Investing in stocks that pay dividends are good passive income ideas. Good shares will appreciate in value and offer dividend payments - for example, HSBC Holdings plc (00005), Link Real Estate Investment Trust (00823), CLP Power (00002), or Town Gas (00003).
2. Bonds and GICs
Reputable bonds and GICs do not only protect your initial investment, but also offer 2-3% interest rates in exchange for you lending them money, making them another great passive income idea.The return is not massive but the risk is minimal.
3. Funds
Instead of investing in a superstar company, you can invest in an entire sector or asset class, or on an economy by buying funds. You can do so by investing in index fund ETFs e.g. S&P 500 which tracks the 500 biggest companies in the US stock exchange instead of an individual US stock.
4. Cryptocurrency
Investing in crypto is also a great passive income idea. Some service providers offer an interest if you deposit your crypto. But usually, it comes with a “lockup period”, during which you can’t access your funds for a fixed amount of time.
5. Invest in Property
If you have more money, you can consider investing in properties. For one thing, it may appreciate over time and you will then be able to earn the difference and you can earn rental income each month.
6. Saving Insurance Plan
You can also purchase a savings insurance plan that offers a potential attractive return to achieve long-term wealth accumulation.
7. Affiliate Marketing
To earn passive income, you can also become a blogger and earn a commission for selling another’s product or service. Most of the work will be done upfront and you will enjoy the income if someone buys the product.
Best brokerage accounts in Hong Kong
Huatai International Securities-Zhangle Global
- Min. Commission Fee US Stocks
- US$0
- Commission Fee HK Stocks
- HK$0
- Min. Account Funding
- HK$0
New users will be eligible to get up to HK$2,086 rewards after opening an account and make first deposit ≥HK$10,000 and retain for 30 days with promo code「MS23」and submit the reward claim form via MoneySmart and fulfilling specific requirements.
- HomePod mini (Retail Price: HK$749) / HK$500 Apple Store Gift Card/ PARKnSHOP Voucher/ HKTVmall E-vouchers
- 1 share of Disney (Valued at HK$879)
- HK$200 Fund Cash Rebate Coupon
- V1 3-month membership (valued at HK$24)
- Complete 1 transaction within 30 days can get V2 3-month membership (valued at HK$234)
- Account opening tutorial: bit.ly/MSlps-Huatai
*Terms and Conditions apply.
Webull Securities Account
- Commission Fee US Stocks
- US$0
- Commission Fee HK Stocks
- HK$0
- Min. Account Funding
- HK$0
New users who successfully open accounts, make the first deposit at least HK$10,000 and no withdrawal for 60 days and submit the reward claim form via MoneySmart can get extra up to HK$1,598 rewards:
- Bruno BOE053 compact hot plate (Retail value: HK$1,598) / Samsung Galaxy Tab A9 (Retail value: HK$1,288) / HK$1,200 Apple Gift Card OR HK$1,200 PARKnSHOP supermarket vouchers (distributed by MoneySmart)
OR HK$200 PARKnSHOP Vouchers (For those only first deposit HK$10,000 or above and retain less than 60 days) - Account opening tutorial: https://bit.ly/MSlps-webull
*Terms and Conditions apply.
Interactive Brokers
- Min. Commission Fee US Stocks
- US$0.0035
- Min. Commission Fee HK Stocks
- 0.015%
- Min. Funding
- HK$0
・Transparent and low rates; investors could choose between fixed rate commission pricing and tiered pricing
・US$0.0035 Min. Commission Fee US Stocks
・0.015% Min. Commission Fee HK Stocks
Syfe
- Minimum investment amount
- HK$0
- Annual Management Fee
- 0-0.65%
- Minimum First Funding Amount
- HK$10,000
【Syfe Income+】Open account via MoneySmart can receive a HK$300 Apple Gift Card OR HK$300 PARKnSHOP E-Vouchers OR HK$300 HKTVMALL E-Vouchers!
Simply enter the code “MSSYFE23” after your successful sign up to be eligible to get HK$300 equivalent gift rewards from MoneySmart (first fund HK$35,000 or above into any Syfe portfolios) Also can enjoy extra HK$200/ HK$500/ HK$700 Syfe cash rewards (first fund HK$35,000 /HK$100,000/ HK$200,000 or above into any Syfe portfolios)
1. 【Syfe Income+】
・Earn up to 8.6% p.a. target monthly payout in HKD
・Get HK$200 when you first fund HK$25,000 into Income+
・Get HK$500 when you first fund HK$100,000 into Income+
・Get HK$700 when you first fund HK$200,000 into Income+
2. 【Syfe Cash Management Solution: Cash+】
・Earn yield of 5.41% p.a. on your idle cash
・Get HK$200 when you first fund HK$25,000 into Cash+
・Get HK$500 when you first fund HK$100,000 into Cash+
・Get HK$700 when you first fund HK$200,000 into Cash+
3. Other Syfe investment portfolios
・Get HK$200 when you first fund HK$35,000 into any investment portfolios
・Get HK$500 when you first fund HK$100,000 into any investment portfolios
・Get HK$700 when you first fund HK$200,000 into any investment portfolios
Stocks Trading Platform in Hong Kong :
Stock Trading Platform | Commission Fees (US Stock) | Commission Fees (HK Stock) | Features |
---|---|---|---|
Valuable Capital Brokerage Account | US$0.99 | HK$0 |
|
SoFi Hong Kong Brokerage Account | US$0 | HK$0 |
|
Webull Securities Account | US$0 | HK$0 |
|
Saxo Markets | US$3 | HK$18 |
|
Compare More Trading Accounts in HK!
FAQ
Why should I create a passive income?
- It frees up your time to actually do the active work and protects the value of your money.
Can I create passive income through investments?
- Yes, you can. Getting your money to work for you through investing in appreciable assets is a smart way to add money to your income stream.