We all know that living in Singapore is expensive. If that’s not enough reason to convince you that you need to build up your passive income, here are four reasons why you need to start building up your passive income.
1. Paying For Big Ticket Items (Student Loan, Wedding, Home)
Settling down in Singapore means that we have to afford two big ticket items in our lives: Our wedding and our first home.
According to CPF Board’s ‘Are You Ready?’, a typical Chinese wedding is estimated to offset us $43,000-$56,000. Of course, we can convince ourselves that the net cost is lower with red packets from relatives and guests. But you will have to pay for these costs upfront before recovering from your red packets.
Big Ticket Item 1: Wedding
Big Ticket Item 2: Your First Home
The estimated cost of buying your first home will offset you another $53,000-$65,000 for the down payment and renovation costs. The total sum of your expenses in the first few years of adulthood is going to set you back $70,000-$90,000 on average! And don’t forget your student loan that you still owe!
Why not start making passive income while you are still studying, or while you are in the early stages of your career to save for these big ticket items?
2. Living Your Old Age In Comfort
As we get older, we tend to work less. We then retire and rely on our supposed retirement nest: Central Provident Funds (CPF). But are you really convinced that your CPF has enough cash for you to retire with?
As we grow older, the minimum sum of CPF continues to scale upwards. Compared with ten years ago, the minimum sum is now 1.8 times more than in 2005!
And thanks (but no thanks) to inflation, we will definitely see the retirement sum increase in the years to come. The question is, are you prepared for it?
Even if you have the minimum sum required in your CPF, is it enough for your retirement? With $161,000, you are only able to draw $1,220 every month through CPF Life at the age of 65.
Is $1,220 enough to sustain your monthly expenses? Another question is, what do you live on from 55 to 65 years old? What happens if you no longer have a job by then?
Now is the time to pick up skills to help you create passive income! Learn how to create that additional income without having to commit too much time when you are still young.
Then live your retirement live in comfort, rather than having to worry about your living expenses.
3. Financial Freedom – Our Family, Our Passion
One of the things wealthy millionaires do is: TO NOT trade time for money.
This is something we need to learn from those high net worth individuals. We need to shift away from the mindset of being paid, i.e. literally exchanging our time for money.
Instead, we want to be efficient in creating income so that we are able to focus on things that we enjoy or spend time with people whom we love.
We have every right to spend quality time with our families or doing things we enjoy! Yes, that’s right. We WANT that elusive work life balance!
We all want to be in a position to be able to make real changes and contributions to causes that we and our loved ones really care about.
With passive income, we get paid, regardless of being in the office or not. What’s more, we only need to spend a fraction of our time every day!
The beauty of passive income is that it gives us the desired flexibility in deciding how we want to spend our time, be it witnessing our children’s growth or spending time with our parents.
Click here to learn more about how you can create passive income for yourself with minimal effort!
4. Passive Income Makes You Healthy!
Researchers have been researching heavily into how work can actually make us healthier since more than a decade ago. Can work actually make us healthier?
Work is not what is making us healthier. The requirements of work are actually what is driving us to be healthier individuals. Work keeps our brain thinking instead of letting it go into dormant mode. It prevents our brain from being rusty.
Passive income also works wonders for our brain by keeping our brain active, just like work. But the problem is, we tend to overwork our brain during work.
As mentioned previously, we do not have to spend long hours on creating passive income. This means that we are unlikely to overwork our brain, but rather, we provide our brain with adequate stimulation to keep it healthy.
Click here to learn more about creating passive income to your brain active and keep yourself healthy!
