11 Ways for Regular People to Earn Passive Income in Singapore
“Make your money work for you” is the main principle behind getting passive income in Singapore.
This concept is rising in popularity as we become more financially literate but the world of side hustles and passive income in Singapore still remains obscure.
If you’re looking to retire early or just looking to pocket a bit more money in light of the rapid inflation, read on to find out our top ten ways that you can incorporate passive income into your total monthly income in Singapore!
Rental Properties
If you have a spare room in your house, this can be a great way for you to get some passive income in Singapore. Our country is densely populated and there’s always someone in need of a place to rent.
The first step would be to furnish your bedroom and take photos. First impressions do matter, so remember to spruce up the area well and take well-lit pictures.
Then, all you’ll have to do would be to list your room on websites like Property Guru or Carousell and wait for the rental requests to come rolling in!
Although this might require a bit of work initially, after securing a tenant, you become someone with a passive income in Singapore. Just be sure to sign a contract to avoid any unexpected headaches!
Additionally, ensure that your property meets the stipulated requirements from HDB for rental.
Monetizing Your Hobbies
What’s better than you being able to get paid while you engage in your hobbies? Since you’re already going to be spending time on your hobbies, finding ways to earn money while doing this can be a great way to spend your time.
First and foremost, you have to determine what you’re good at and what you think people would want to pay you money to do.
If you’re great at gaming, this is a wonderful way to earn some passive income in Singapore. All you’ll have to do would be to get a cheap ring light, a good quality microphone, and stream yourself on applications such as Twitch.
Another way for gamers to get some additional income in Singapore would be to download mobile games and climb up the ranks. There are many people out there willing to pay you to ‘take over the game which makes this a fun way to earn some money online in Singapore.
If you’re someone who loves food, you can create content on TikTok by speaking up about your favourite food spots in Singapore. You might get sponsorships that can allow you to further engage in your hobbies for free!
If you’re someone with an outgoing personality, you can consider starting up a Youtube channel to share your passions with the world. Advertisement revenues can be a way for you to get a side income consistently, right here from Singapore!
Since you can do this right from your home, these are quick ways that can make money online. Earning a passive income in Singapore does not need to be a mundane process with this method.
Selling Study Notes
If you’re someone who has been getting straight A’s in school, you can also try selling your notes to earn money online.
Once again, applications like Carousell, Facebook Marketplace, or even your personal Instagram stories are great platforms for you to list this service so that you can make money online.
These notes have already been created so all you’ll need to do to get some passive income in Singapore would be to tidy up these notes so that they’re more digestible by strangers.
After investing that initial amount of time, this can be a way for you to get a steady side income in Singapore.
Renting Out The Items You Own
If you recently dropped a huge bomb on the latest camera equipment, you might be feeling the sting in your pocket. Why not leverage this to generate some side income for yourself in Singapore?
All you’ll have to do would be to list these products on websites like Carousell and price your items affordably so that people are more likely to rent from you. You have a competitive advantage if your item has never been listed before!
This does not only work with expensive equipment but also for other unique items that you may have in your possession. For example, a picnic basket that’s lying at the back of your closet might just be the thing that helps you generate passive income in Singapore.
Reselling Branded Goods
If you’re someone who travels voraciously, reselling branded items can be a splendid way for you to pocket some additional side income in Singapore. Brands here such as Prada and Gucci are notoriously overpriced compared to Europe.
Hence, if you’re planning on travelling to any European country, you can list your services on a consumer marketplace and wait for people to state the items that they desire. This can allow you to monetize your services to make some passive income in Singapore.
What’s more fun than earning some passive income in Singapore while travelling? Just ensure that you factor in any import taxes and that you have sufficient luggage space when you’re listing your items.
Selling Homemade Food
Singapore is a foodie’s dream location due to the plethora of varying cuisines that are available here. We have a strong culture of making homemade food and this might help you earn some passive income in Singapore.
Since COVID-19, the rise of home-based cooking businesses has increased. Hence, if you enjoy baking or cooking and do it regularly, you can monetize this interest of yours! All you’ll need to do would be to spread the word about your business to garner interest.
With this source of passive income, there is a great deal of flexibility that you have. You can sell your cooked items only during certain festivities, such as Christmas, or only open orders on weekends.
Photo by Vulcanpost
Since you’re going to be cooking, either way, this can be a wonderful way for you to eat some good food and earn some passive income in Singapore.
Investing In Dividend Stocks or REITs
If you’re well-versed in the world of stocks, we hope that you have included dividend stocks or REITs in your portfolio so that you can earn some passive income in Singapore through this avenue!
For those who are unfamiliar, dividend stocks are stocks that pay you a higher and more consistent dividend yield than the average stock.
Simply put, the company pays you a fixed percentage for holding their stock. However, this is slightly risky which is why we would suggest that you invest in Dividend ETFs.
Though the amount of side income in Singapore that you generate depends on the amount of money you have invested, this can be a simple way for you to pocket some additional passive income in Singapore.
An example of a great blue-chip dividend stock would be DBS, which offers a dividend yield (TTM) of 4.45%.
These dividend stocks give you your dividends on a quarterly or annual basis, depending on the company.
Then there are Real Estate Investment Trusts (REITs).
REITs are funds that invest in a portfolio of income-generating real estate assets. It works as a collective investment scheme that pools together several investors’ money to accomplish this, allowing retail investors to get in on some of the action!
REITs are obligated to pay out 90% of their earnings as distributions to their investors, with an average yield of 4-6% per year. Some examples of REITs in Singapore include Mapletree Industrial Trust and Ascendas REIT.
Affiliate Marketing
Most of you reading this article probably have a social media account and are influencers, to varying extents.
If you’re someone with a more prominent social media presence, affiliate marketing can be a wonderful way for you to make some passive income in Singapore.
All you’ll need to do is sign up as an affiliate for a specific company under an affiliate program and promote this company’s product. For each person that chooses to purchase this product, you get to earn a small sum.
You get the opportunity to market varying products, so you can choose to pick one that resonates with you. This is a flexible and enjoyable manner for you to earn passive income in Singapore.
So, it doesn’t matter which part of the world the person you’re selling the product to is from! Affiliate marketing allows you to make money online and earn a passive income, right here in Singapore.
Making Safe Investments
Putting your money into less volatile investments is another way for you to get a passive income in Singapore.
Even though higher-risk investments are a way for you to earn quickly (well, only if you time the market right!), low-risk investments allow you to passively earn money in Singapore with greater peace of mind.
If you’re worried about entering the stock market or using Robo-advisors like Syfe, you can simply move your money to your CPF accounts which can offer you returns ranging from 2.5% to 6%.
However, only do so if you’re sure that you won’t need your money for a long time as this can only be withdrawn when you’re 55.
You can also choose to put your money in bonds, where you earn passive income as the borrower gives you a certain amount after a specific period, almost like a reward for ‘lending’ them money.
When you hold your bond to maturity, you will get back the principal amount of the bond, alongside accrued interest that is often paid out in regular intervals.
You can look into government bonds like the Singapore Savings Bond(SSB), which requires a minimum investment of S$500 and has a holding period of ten years. However, you get to enjoy a step-up interest rate each year where the yield increases the longer that you save.
This is a low-risk way for you to earn passive income in Singapore and the interest that you earn will be deposited every 6 months.
Additionally, you can also choose to put your money in fixed deposits, where you get to enjoy a fixed interest on your principal amount until maturity.
Even though these sources of passive income may not give you money in the short term, they can be a great way for you to earn money over the long term in Singapore.
Investing in Equities
Equities involve different asset classes like Stocks, Stock ETFs, and Mutual/Unit trusts.
They are a higher-risk asset class that could see higher returns.
If you had invested $100 in an ETF that tracked the S&P 500 in 2000, you would have about $482.60 at the end of 2021, assuming you reinvested all dividends.
This is a return on investment of 382.60%, or 7.42% per year.
If you used dollar-cost averaging (monthly) instead of a lump-sum investment, you'd have $524.41.
However, though equities may seem alluring, they can also be extremely risky.
If you’re unsure about whether you should invest in Equities, check out our risk profile calculator!
Alternatively, if you’re looking to get into investing but have no idea where to start, it would be smart to work with a financial professional.
Contrary to their reputation for pushy sales tactics, financial advisers help new investors cut through the noise. They can arrange your investments and build a financial plan that helps ensure you will meet your financial goals in a sustainable manner.
With regards to investment planning, they do the following:
Identify your current life stage
Identify your goals, needs and wants
Find out how much you will need for each need, wants, and goals
Plan how you can achieve these goals
Build and optimise your financial investments
To help you take control of your personal finance, Techiya offers a free comprehensive and personal financial assessment worth over $200 for individuals, don’t miss out on this!
Cryptocurrency
Cryptocurrency may seem like a taboo topic to bring up, given the recent sea of red. However, not all hope is lost! There are still other stable coins out there that can allow you to reap passive investments in Singapore.
Ultimately, cryptocurrency is a very new field which is why it’s highly risky and experiences more volatility.
If you're looking to get into what may potentially be the next big thing, cryptocurrency can be a way for you to earn some side income in Singapore.
Photo by Kanchanara on Unsplash
However, please do your own research! If there’s anything that we’ve learned from the recent Luna crash, it would be that diversification is essential. Cryptocurrency can be a way for you to earn some additional passive income in Singapore but you should not rely on it solely for your income.
If you prefer to be cautious, you can choose to buy the stocks of companies that have exposure to cryptocurrencies to reduce your risk. This can be a safer way for you to generate passive investments in Singapore.
On the other hand, if you’re someone who is more well-versed in the world of cryptocurrency, then you can opt to venture into crypto staking or yield farming.
However, not all cryptocurrencies offer this option so here’s a list that you can refer to if you wish to earn passive income in Singapore through this method.
Please note that this is a riskier method for you to make money online compared to others.
Conclusion
Through this article, we hope that the world of passive income is demystified.
There are many great ways for you to earn money without breaking too much of a sweat!
Techiya specializes in Investment Planning for individuals looking to grow their wealth.
If you’re interested in seeing for yourself what an investment advisor can help you achieve, Techiya is offering a free comprehensive and personalized financial assessment worth over $200, just sign up now!
Apart from that, we hope that this guide will help you reach your financial goals in a more efficient manner!
*Disclaimer: The information provided is for general information purposes only. It does not constitute any form of financial advice.*
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