Have you experienced the joy of having money almost literally dropping on your lap without any effort on your part? Neither have we, before discovering the joys of income producing assets.
It’s the whole premise behind popular books like Robert Kiyosaki’s Rich Dad, Poor Dad and Tony Robbin’s Money, Master the Game. You could read their books for the story and the entire mindset shift that comes with this type of investment (which makes for really good reading!), or you can just take it from us that this is the crux of the matter.
Just 2 weeks ago, we learnt that we earned a nifty dividend of $15,000 from one of our investments. That’s exactly what our 3 months of travelling at this point has cost us (without flight tickets).
Unlike traditional work, we didn’t lift a finger to earn that. What did we do to earn that? Research the company, purchase some stocks and twiddle our thumbs (hardest part).
The challenge with income producing assets is that it takes time to build up. You need a sizeable amount invested to get a sizeable return. To illustrate:
Invested Amount
$1,500,000
$1,000,000
$500,000
$100,000
Scenario 1
STI div yield 4.2%*
$63,000
$42,000
$21,000
$4,200
Monthly passive income
$5,250
$3,500
$1,750
$350
Scenario 2
5 highest-yielding REITs and business trusts div yield 7.1%*
