As we come to the end of the year, are you wondering what is my total passive income collected in 2024? The total passive income that I have collected in this year 2024 is S$19,705.08. The amount is an increase of 18.66% as compared to S$$16,606.89 of passive income I have collected in the year 2023.
My passive income ideas or sources come from the dividend payout from my stock investments, interest from Singapore Savings Bond and Singapore Treasury Bills (T-Bills). I have excluded the interest payout from Fixed Deposits as I currently do not track those.
Building my passive income helps brings me a step closer to FIRE. FIRE is short for Financial Independence, Retire Early. FIRE is a major life goal as I wanted the luxury to be able to choose whether to work before the statutory retirement age. To be able to retire early, it is important for me to
- Start planning early, be prudent in your savings and accumulate a larger nest egg for your retirement years.
- Estimate your monthly expenses during your retirement years. (Need versus Wants).
- Build multiple sources of passive income to mitigate against longevity and inflation.
Even if you are not aiming for FIRE, the passive income can also be useful in other ways. Passive income can help pay off your bills or give you an overseas vacation holiday treat.
How Do I Track my Passive Income?
Tracking my passive income from REITs, Singapore Savings Bond and Singapore Treasury Bill is easy with Stocks Cafe. Stocks Cafe’s automatic dividend tracking feature automatically helps you track dividend payouts. Based on your portfolio, Stocks Cafe shows you your total due and paid dividends, announced dividends, projected dividends and all dividends.
How to Earn Passive Income – Invest in Dividend Stocks and REITs
Over time, I have built a portfolio of stocks and REITs that constantly pay me dividends. My current stock portfolio is heavily weighted on REITs over other companies. Personally, I felt investing in REITs is easier as compared to picking single companies to invest in. The diversified portfolio of REITs made it a safer investment and I will recommend beginners who just started in stock investing to start off with picking a few quality REITs to invest first.
If you are interested to know what are the REITs that pay the highest dividends, do subscribe to my blog and watch out for Singapore REITs Dividend Yield in December 2024.
How to Earn Passive Income – Buy Singapore Savings Bond
Singapore Savings Bonds are a type of government bond issued by the Monetary Authority of Singapore that offers individuals a safe and flexible way to save money. These bonds have a low minimum investment amount, starting at just $500, and offer a higher interest rate than traditional savings accounts.
Investors can purchase Singapore Savings Bonds directly from the government and hold them for up to 10 years, earning regular interest payments along the way.
In December, the latest issue of Singapore Savings Bond (SBJAN25) gives you an effective return of 2.86% if you held it for 10 years. Personally, I felt that this is not too bad given its almost zero risk nature.
How to Earn Passive Income – Buy Singapore Treasury Bill
Singapore Treasury Bills (T-Bills). Treasury bills (T-bills) are short-term Singapore Government Securities (SGS) issued at a discount to their face value. Investors receive the full-face value at maturity.
The Singapore Government issues 6-month and 1-year T-bills. In 2024, I have started purchasing Singapore T Bills. Similarly to Singapore Savings Bond, investing in T Bills have lower risk as compared to stock investing which make them a suitable to park your spare money.
Passive Income Ideas – New in 2024
Recently, I have started making a few videos about REITs and stock investments. Do check out and subscribe to my channel here: Sweet Retirement – YouTube.
On top of that, I have signed up as an Amazon affiliate. As an Amazon affiliate, I earn a small fee if you purchase any investment books via the link from my posts. Please check out the Top Financial Books to Read in November 2024.
Do you have any more new passive income ideas?
Feel free to share them via comments below!