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
- Account Opening Min. Funding
- HK$10,000
New customers who successfully open an account through MoneySmart with promo code「MS23」and submit reward claim can enjoy the following exclusive rewards up to HK$2,377!
Reward 1️⃣: Make the first deposit amounting to HK$10,000 or above, and retaining the fund for 30 days can get :
- HK$500 Apple Store Gift Card OR
- HK$500 ParknShop e-voucher
Reward 2️⃣: Official welcome offer up to HK$1,047
💰Extra reward 3️⃣ : HK$688 Cash
Webull Securities Account
- Commission Fee US Stocks
- US$0
- Commission Fee HK Stocks
- HK$0
- Account Opening Min. Funding
- HK$10,000
New customers who successfully open an account through MoneySmart and submit reward claim can enjoy the following exclusive rewards!
【$80K Asset Reward 】: Upon successfully opening an account through MoneySmart, make first deposit of ≥HK$80,000 maintain the funds for 60 days:
* B&W Pi7 S2 In-ear True Wireless earbuds (valued at HK$3,380）/ SAMSUNG Galaxy A35 5G (8GB RAM + 128GB ROM)
(valued at HK$2,698）/ HK$2,500 Apple Store Gift Card / HK$2,500 PARKnSHOP supermarket vouchers / HK$2,500 HKTVmall e-Vouchers / HK$2,500 Trip.com e-vouchers
【NEWEST Reward】: Upon successfully opening an account through MoneySmart and making first deposit ≤HK$79,999 and maintain the funds for 60 days, can get :
- HK$600 PARKnSHOP supermarket vouchers
Interactive Brokers
- Min. Commission Fee US Stocks
- US$0.0035
- Min. Commission Fee HK Stocks
- 0.015%
- Account Opening Min. Funding
- HK$10,000
・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+】Get up to HK$1,000 Rewards!
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)
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.