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.

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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.

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Best brokerage accounts in Hong Kong

MoneySmart Exclusive
🔥Highest offer in town
MoneySmart Exclusive
🔥Highest offer in town

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$2,089 rewards after opening an account and make first deposit ≥HK$20,000 and retain for 30 days with promo codeMS23and submit the reward claim form via MoneySmart and fulfilling specific requirements.

  1. HK$888 Cash (delivered by Huatai, can be directly withdrawn to bank, need to submit reward claim form) /PHILIPS ADD4911 Water dispenser (value at $898)/ HK$800 Apple Gift Card/ HK$800 YATA Department Store e-Coupon (no transaction required)
  2. 1 share of Disney (Valued at HK$674) 
  3. HK$200 Fund Cash Rebate Coupon
  4. V1 3-month membership (valued at HK$24)
  5. Complete 1 transaction within 30 days can get V2 3-month membership (valued at HK$234)
  6. Account opening tutorial: bit.ly/MSlps-Huatai

*Terms and Conditions apply.

Valid until 29 Feb 2024
MoneySmart Exclusive
MoneySmart Exclusive

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 via MoneySmart, first deposit HK$10,000 and get extra HK$200 PARKnSHOP Vouchers+make the first deposit at least HK$10,000 and no withdrawal for 60 days can get extra up to HK$2,380 rewards:

  1. MoneySmart Exclusive: B&W Pi5 S2 In-ear True Wireless earbuds (Retail value: HK$2,380) OR HK$1,000 Apple Gift Card OR HK$1,000 PARKnSHOP supermarket vouchers OR HK$1,000 YATA Department Store e-Coupon (distributed by MoneySmart)
  2. Account opening tutorial: https://bit.ly/MSlps-webull

*Terms and Conditions apply.

Valid until 29 Feb 2024
Online Promo
Min. Commission Fee US Stocks
US$0.0035
Min. Commission Fee HK Stocks
0.015%
Min. Funding
HK$0
Online Promo:

・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
Valid until 29 Feb 2024
MoneySmart Exclusive
MoneySmart Exclusive

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+
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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

Valid until 29 Feb 2024

Stocks Trading Platform in Hong Kong :

Stock Trading Platform Commission Fees (US Stock)Commission Fees (HK Stock)Features
Valuable Capital Brokerage AccountUS$0.99HK$0
  • Create account: online registration and activate account with e-signature
  • Support US and HK stock trading, A Shares, ETFs, futures, funds, warrants, callable bull/bear contracts, inline warrants, IPO
  • IPO subscription margin interest rate at 1.6%, up to 95% margin
SoFi Hong Kong Brokerage AccountUS$0HK$0
  • No commissions fees on trades
  • Fractional share trading
  • Start investing with as little as US$10 to own fractions of stocks, including Amazon, Tesla and Apple
Webull Securities AccountUS$0HK$0
  • Provide access to Hong Kong Stocks, A shares, ETF, derivatives listed on the SEHK, Hong Kong IPO and Odd Lot. US stocks will be coming soon.
  • Offer 8 types of charts, 50 technical indicators, 12 types of line drawing and adding CYQ function.
Saxo MarketsUS$3HK$18
  • Offer access to over 40,000 markets at industry-leading prices across stocks, ETFs, bonds, commodities, options, futures, funds, managed portfolios, FX and CFDs
  • Access 19,000+ stocks across core and emerging markets on 37 exchanges worldwide - HK, US, CN, UK, EU and JP

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.