I have been researching this topic ever since I started work. Not sure why I am so obsessed with the notion of generating income from investing.
Like most Singaporeans, the insane need to monetise every idea seems prevalent as if it is the most pragmatist approach to how to handle or deal with everything. For example, I once got inspired to sew fabric tissue pouches for my lonely tissue packet as it sat on the table of the hawker centre looking forlorn and as if its owner had left it behind after their meals. I carefully chose the fabric and designed it to suit my need.
It had to have a different hardier fabric inner lining so that it differentiated itself from the outer layer. Kind of like how our skin covers our internal organs. We are made of stronger mettle unlike our sensitive and sometimes brittle skin.
So I set the draft design on paper and then cut the fabric diligently and into shape and then sew the pieces into a form with a slight opening like the lips of our mouth, opening and closing as and when we need to take a piece of tissue out. It was great design and I could choose from a vast limitless array of cloths, mostly curated from Spotlight (shop at Plaza Singapura) to fuel my creative inspired product.
Haha, product. That’s when the monetisation idea sneakily slipped into my mind. And in an instance, my lightning fast mind started thinking of pricing and modality to achieve my desired sales target. And realisation set in, I am not a professional tailor as I bespoke sew each pouch by hand. It was intensely crazy.
So I decided to change my approach, I enjoy creating the pouch, it made me immensely happy and with each completed pouch, the sense of accomplishment and feelings of completeness was priceless. So I reached out to my friends on social media and shared with them my idea, and that if they liked my tissue pouches, I would make them one if they donated towards my favourite charity the children cancer foundation. All they needed was to show me the receipt and I would send them the tissue pouch.
So recently I have been thinking about passive income and financial freedom or financial independence and what that really meant for me and my family. I guess it is the freedom to stop work in the simplest of definitions. And to also do the things that matter to you the most, which is to connect with family and ensure that family also learns the values of hard work now so that they can enjoy later.
The best vehicle for passive income besides putting money into dividend stocks is to really to sell cash covered puts for the stocks that you like. That’s like going to the ATM and drawing money for the entire month. The only drawback for this approach is that you need to have sufficient cash to buy the stock if you eventually get assigned, but otherwise, the whole idea is to let the monthly put option expire worthless and you keep the premium in your pocket.
If my monthly expenses is $2000, then I guess I will sell cash covered puts for the premium of $2000. I will do that, and keep my fingers crossed that the stock’s share price doesn’t tank for whatever reason. LOL.