Financial Freedom SG

Received a pdf document listing the royalties from my publisher today. It listed the royalties earned for the last year. I wrote the book when I was an educator in a secondary school together with 2 of my colleagues. One of them have since left the teaching service, the other is at an overseas school and still teaching.

When I came home, I saw the dividend/scrip given out by OCBC. So today has been a good day for passive income. I opted for scrip by OCBC by the way, not the dividends.

I remember a blog post that I read from about the snowball effect of passive income. When you first build this passive income, you sniff and think that it is just a small amount, but later, it can form the bedrock of your retirement income.

I remember reading an article from a blog that talked about how savings can increase even more as passive income increases. I think that is a point that I haven’t even thought about.

But it is true.

Imagine that you have saved a quarter of a million dollars and invested the amount which earns you a pretty conservative dividend of 2% per annum. That is $5000 a year which is around $416 a month. Not something you ought to scoff at.

Over time, with an increase in your income through contributions from passive income and a normal return from investment, you would have build up a sizeable amount for retirement.

The earlier you start, the longer the passive income runs.

I hope that the passive income I have increases every year and one day it is big enough for my wife and me to consider ourselves financially free.