[Music] I know that many of you, your eyes will
light up when you hear the word passive income because it seems so easy, so good, right? Just
sleep, and then you can collect money. But the truth about passive income is that it requires
capital, and by capital, I'm not just talking about money. I'm also talking about time to
build the asset so that it can bring you some kind of return, either dividends, interest, cash
flow, or rental. So if anyone is telling you that passive income doesn't need a huge capital
or that you don't need time to spend on it, I think you need to be a little bit wary. Which
is why in this video, I'll talk about how you can earn a passive income of $1,000 per month.
But of course, that will require some capital. And how much capital are we talking about? I'll go
through and sum up at the end of this video.
Now, to put it into context, I started recording about
my passive income cash flow since May of last year. So it has been about 10 months now, and the
average passive income that I receive every month is above $2,000. So if you ask me whether passive
income is possible or not, I would say yes, it is possible. But this is based on the assumption that
you have some capital set aside into these passive income instruments. And some of it will come with
a little bit of risk, I must warn you. But in this video, I'll just break down a few passive income
sources that are significantly lower risk compared to what you may expect them to be.
And I'll base
it on the 30-day period, which is around 1 month. But do not take anything I say as financial
advice. If you think I'm talking Rubbish, just treat it as financial entertainment. And if
you would like to join like-minded individuals to build their passive income, then come and join
us at over 14,000 members at the Honeymoney SG Telegram group. Alright, the first passive
income source will come from bank interest, and specifically, I'm going to talk about the UOB
One account. The UOB One account needs no further explanation. I'm sure many of you have heard of
it. 5% effective interest on the first $100,000 of savings, provided you meet these two criteria,
which is to spend $500 on selected UOB credit or debit cards, and secondly, you need to credit a
salary of minimum $1,600 by GIRO or PayNow. So, it is quite clear-cut, right? Firstly, you need to
have that capital of $100,000 Singapore dollars. Then, secondly, you need to at least hit $500 of
credit card spend, plus you credit your salary. Therefore, if you just want to calculate per day
how much interest can you get, you will take 5% over 365 days, multiplied by $100,000, which is
around $13.70 a day.
So, on the 30-day period, you just need to take 30 days, multiply by $13.70,
and you will get $411. Which is also why in some months, example last month in February, your bonus
interest seems a bit lower because February only has 29 days. So, per day, $13.70 you need to
multiply by how many calendar days are there in that month. So, the first passive income option,
quite straightforward, right? $100,000 of capital, then you get $411 per 30 days. The second
passive income source is also quite low risk, and it's called Syfe Cash Plus Guaranteed. And I'm
sure not just Syfe Cash Plus Guaranteed, but there are also other platforms offering kind of similar.
And if you're not familiar with Syfe Cash Plus Guaranteed, it is actually an investment product
whereby it gets all the best fixed deposit rates from various banks, and they pull together to form
a good product with relatively good returns. So, it is kind of similar to fixed deposit nature.
You need to put it into a fixed term, and during this term, you cannot withdraw out the funds. And
hence, you can only see your funds after the term has ended.
Now, as of the date of recording, Syfe
Cash Plus Guaranteed, the highest rate is at 3.8% per annum for the 3 months tenor. So, assuming I'm
only comfortable to put in $24,000 into this Cash Plus Guaranteed for 3 months, the calculation
will be as follows: 3.8% multiplied by $24,000, multiplied by 30, divided by 365 days, and that
will be $75 for that 30-day period. So far, how much have you invested really? $100,000 in
UOB One, $24,000 in Syfe Cash Plus Guaranteed, and you get a passive income of $411 + $75, which
is around $486. Not too bad, really. Moving on, let's talk about the top option, which is money
market funds.
And specifically, I do want to talk about Moomoo Cash Plus, who is the sponsor of
today's video. I know that investments may sound really complicated, and it is quite scary to start
off with really large amounts. So, if you want to start with smaller amounts, then you can consider
to use Moomoo Regular Savings Plan, or RSP, to dollar cost average into your favorite US
stocks or ETFs. To set up RSP, select your stock or ETF on Moomoo app, click the three dots on the
right, and then RSP. Start with minimum $10 USD and select contribution frequency from weekly,
every two weeks, monthly, or daily. Moomoo also has a new RSP calculator, where if you put in
your desired stock or ETF and put in the dates, they can show you the historical results based
on the past trend.
And then if you want, you can even create an RSP from there. For new to Moomoo
users, you can get up to $447 Singapore dollars on Moomoo Cash Plus based on the 6.8% per annum
guaranteed return applied on the first $80,000 Singapore dollars of your holding. Please note
that Cash Plus is an investment product. It is not comparable and is different from savings deposits.
Principal is not guaranteed and up to 30 days, 6.8% per annum is guaranteed only during the
promotional period. Also, you can get up to four stock bundles of the top five traded US
stocks worth $70 each and one Apple stock worth $243 Singapore dollars. And if you sign up with my
exclusive link, you can get a bonus $20 Singapore dollars cash coupon. Total rewards value of $990
Singapore dollars. Holding period and buy trade applies. Investment in market products involves
risk and the risk of losing principal. For more details, please refer to the promotional page
in the description below. As a bonus, you can redeem $2 USD cash back when you make a buy trade
of at least $100 on US stocks through RSP. Start investing with Moomoo RSP with my exclusive link
here or scan the QR code right here to get your Moomoo SG Universal account today.
And yes, I know
that the UOB One account is going to get nerfed from May onwards because the video was produced
some time back and the news was quite recent about the new UOB One account. So, that is some
very bad news. But don't forget that Moomoo has also launched the new Invest Master campaign where
you can still get that 6.8% per annum guaranteed return on Moomoo Cash Plus. So now, instead of the
usual 3 something percent, you can participate in the Invest Master campaign and get 6.8% per annum
up to 60 days.
So, I guess you win some and you lose some. So, assuming I just want to put $50,000
into Moomoo Cash Plus and they subscribe at 6.8% per annum guaranteed, then the total return
after 30 days will be 6.8% multiplied by $50,000 multiplied by 30 divided by 365, and that will be
$280 for a 30-day period. But I know what some of you are going to say: "This 6.8% is only a promo
rate." So, after the promo rate, if we get such good returns, never mind, then I'll use a lower
estimate.
I'm going to use 3.7% per annum because 3.7% per annum is kind of the annualized fee based
on the past few months that I've used Moomoo Cash Plus. But past performance is not a guarantee
of future performance. Let's get this disclaimer in. So, assuming 3.7% per annum, and then the
subscription amount is $50,000, there will be 3.7% multiplied by $50,000 multiplied by 30 divided
by 365, and you'll get a total return of $152 after 30 days. So, not bad, right? We are already
adding up to the previous passive income, assuming you have this amount of capital. Let's move
forward. Next option, I will talk about dividend stocks. And for dividend stocks, I'm going to
use a dividend yield of 5.5% per annum. Now, dividend stocks carry a certain level of risk
because this time you're doing stock picking, right? You're picking all these companies who are
distributing dividends and at a rate of at least 5.5% per annum. Do such companies really exist
in Singapore? Then I can show you with some facts that such companies do exist. Specifically, just
the three banks alone, most of them are giving at least 5.5% per annum in terms of the dividend.
Even like OCBC can give up to 6% per annum based on the recording date price.
So, assuming I have
$50,000 invested into any of these three banks at a 5.5% dividend yield, here is the calculation.
5.5% multiplied by $50,000 multiplied by 30 divided by 365, and I'll get a monthly dividend
of $226. Take note that if a company distributes dividends, they are paying from their own profits,
which means that they don't have this money to reinvest back into their business. So, the share
price after the ex-dividend date will usually fall by the same amount of dividends distributed. That
is something that you have to take note of because dividend stocks are not like some low-risk thing.
Actually, it involves some kind of risk that you are supposed to undertake, especially in this kind
of volatile market.
So, I hope that the disclaimer is clear enough. Let's move on to our next passive
income source, relatively much lower risk, and that will be Singapore Treasury Bills. The last
Treasury Bill result gave a cutoff yield of 3.8% per annum, which is pretty great. So, assuming
I just want to subscribe to $50,000 of T-Bills at 3.8%, that will be $50,000 multiplied by 3.8%
multiplied by 30 divided by 365, which will give me $156 of return. And you see, the beauty about
T-Bills is that you not only can use cash, you can also use CPF, you can also use SRS. So, if your
cash capital is not large enough, you can even deploy CPF or SRS funds to subscribe to T-Bills
and then get all these low-risk returns. And these are my five options for relatively low-risk assets
that can gain you $11,000 of passive income. Because let's sum up the total passive income,
right? $411 from UOB One, $75 from Syfe Cash Plus Guaranteed, $152 from Moomoo Cash Plus, plus $226
from dividend stocks like banks, and lastly, $156 from Singapore Treasury Bills.
So, everything will
sum up to a total of $1,020 over a 30-day period. So, you can treat it as a monthly passive income.
Then, how much capital is required? Let's go through them again. $100,000 from UOB One account,
$24,000 from Syfe Cash Plus Guaranteed, $50,000 from Moomoo Cash Plus, $50,000 into dividend
stocks like banks, and $50,000 into Singapore Treasury Bills. If you add all these numbers
up, it will sum to a total of $274,000.
Then, I'm just going to do all the calculation for you.
What is the total effective return? Because you will earn $1,020 of passive income over 30 days,
right? That will be $1,020 divided by $274,000 multiplied by 365, divided by 30 days, which means
an annualized yield of 4.53% per annum. Of course, terms and conditions apply. I know, and past
performance does not guarantee future results. This is a calculation based on the current date
of recording. But I guess for this portfolio, it is considered relatively low risk, other than
the dividend stocks. And I'm sure there are many other ways to make passive income, especially
through property rentals.
And I know that there are some of you out there with even better
passive income sources than me. So, take your time and learn from all these resources across the
internet, then pick those that you want to learn from. And I just want to put it out there that all
this does not include my credit card strategies to earn cash back or even bonus. And for those of
you who haven't watched what my actual passive income from all these cash saving strategies, then
I can refer you to the previous video right here..