I LOVE PASSIVE INCOME, but you know, passive income isn’t made automatic.
I mean, once you’d created the stream or the passive income portfolio, then the passive income comes automatically…but have you thought about
Table Of Contents
How to automatically create streams of passive income?
This is a couple of steps higher than just looking at the end result of passive income, and this is how I frame and structure my decisions such that it automatically creates more and more passive income for me.
Sounds complicated…but it’s really easier than you think.
Workflow and framework
You know, freewill is often touted, and it’s best applied when it comes to love and God, where God gives us full free will.
But when it comes to investing, I dont want too much free will involved because it can cause issues such as
- overthinking
- overdoing
- not doing
And that’s why I prefer to not use freewill when it comes to creating streams of passive income. The easiest way for me, is to
Simplify, simplify…simplify
Every $1 that comes to me (be it $1, $100, $10K or more), there is a flow in terms of %.
- max 50%-75% to spend on living expenses
- min 25% to max 50% to invest into dividend stocks (or global index funds, whichever rocks your boat)
- reinvest at least 50% of dividends into dividend stocks
These are just 3 conditions I set myself, so whenever I get any forms of income, be it from consulting, management fees, treating patients, dividends, they are split into two groups #1 and #2 above.
Rinse and repeat.
Example
#1 If I earn $5000/month.
That’d mean:
- at least $2500 to max $3750 goes into living expenses
- at least $1250 to max $2500 goes into dividend stocks
#2 If I get $1000 in dividends
- $500 goes into living expenses
- $500 goes into dividend stocks
That’s it.
I like to keep things simple.
I’m the founder and writer here at NigelChua.com; as well as serial entrepreneur, therapy business entrepreneur, digital entrepreneur, investor and also happy husband, father and Christian.
Started and sold off a business for 7-figures; built another 7-figure one and growing it further, plus building/investing into other businesses and investments as well as advisory works.
Nowadays I share and teach entrepreneurship, financial independence, retiring early as well as building and living a life you love.
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