7 ways to make passive income - make money work for you even while you sleep

With the cost of living rising, you may wonder how you can increase your monthly income to cope with that. One way you can do it is to create a source of passive income - i.e. making money while you sleep. Too good to be true? Read on to find out more.

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What is passive income?

Passive income is money you earn even while you sleep. This can be achieved when you create something like a blog, an online course, videos, etc. that generate money even when you’re not at work or through investments on property, stocks, funds, etc.

Why should I create a passive income?

Most of us trade time for money by working our day job. But it is not always efficient and it will take up a lot of our time. We could have done something else as Warren Buffet is known to say, “If you don’t find a way to make money while you sleep, you will work until you die.” Also, we will all get retired at some point and stop receiving active income. Therefore, it’s important to make your money work for you.

Passive income ideas: How to make passive income in Hong Kong?

1. Investing in Stocks

Investing in stocks that pay dividends are good passive income ideas. Good shares will appreciate in value and offer dividend payments - for example, HSBC Holdings plc (00005), Link Real Estate Investment Trust (00823), CLP Power (00002), or Town Gas (00003).

2. Bonds and GICs

Reputable bonds and GICs do not only protect your initial investment, but also offer 2-3% interest rates in exchange for you lending them money, making them another great passive income idea.The return is not massive but the risk is minimal.

3. Funds

Instead of investing in a superstar company, you can invest in an entire sector or asset class, or on an economy by buying funds. You can do so by investing in index fund ETFs e.g. S&P 500 which tracks the 500 biggest companies in the US stock exchange instead of an individual US stock.

4. Cryptocurrency

Investing in crypto is also a great passive income idea. Some service providers offer an interest if you deposit your crypto. But usually, it comes with a “lockup period”, during which you can’t access your funds for a fixed amount of time.

5. Invest in Property

If you have more money, you can consider investing in properties. For one thing, it may appreciate over time and you will then be able to earn the difference and you can earn rental income each month.

6. Saving Insurance Plan

You can also purchase a savings insurance plan that offers a potential attractive return to achieve long-term wealth accumulation.

7. Affiliate Marketing

To earn passive income, you can also become a blogger and earn a commission for selling another’s product or service. Most of the work will be done upfront and you will enjoy the income if someone buys the product.

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Best brokerage accounts in Hong Kong

MoneySmart Exclusive
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Huatai International Securities-Zhangle Global

Min. Commission Fee US Stocks
US$0
Commission Fee HK Stocks
HK$0
Account Opening Min. Funding
HK$10,000
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During the promotional period, if you deposit a cumulative total of HK$10,000 or more and maintain it until February 28, 2025, you will receive HK$800 cash. If you deposit a cumulative total of HK$80,000 or more and maintain it until February 28, 2025, you will receive an additional HK$2,400 cash, for a total of HK$3,200 cash! 💰 (Delivered by Huatai) 

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MoneySmart Exclusive
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Webull Securities Account

Commission Fee US Stocks
US$0
Commission Fee HK Stocks
HK$0
Account Opening Min. Funding
HK$10,000

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【$80K Asset Reward 】: Upon successfully opening an account through MoneySmart, make first deposit of HK$80,000 maintain the funds for 60 days:
・PHILIPS RO Water Dispenser ADD6920WH/90 (value: HK$4,288)/ Insta360 X3 Standard Bundle  (value: HK$3,678) / SAMSUNG GALAXY Tab S9 FE (WIFI)  (6GB RAM + 128GB) - 10.9" (value: HK$3,588) / Sony WH-1000XM5 Wireless Noise Cancelling Headphones (value: HK$3,190) / HK$3,000 Apple Store Gift Card / HK$3,000 PARKnSHOP supermarket vouchers / HK$3,000 HKTVmall vouchers / HK$2,900 Deliveroo Cash Voucher + 12-month Deliveroo Plus Silver Membership Package (value: HK$3,626)
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Upon successfully opening an account through MoneySmart and making first deposit ≤HK$79,999 and maintain the funds for 60 days, can get up to HK$1,226:
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Valid until 03 Jan 2025
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Min. Commission Fee US Stocks
US$0.0035
Min. Commission Fee HK Stocks
0.015%
Account Opening Min. Funding
HK$10,000
Online Promo:

・Transparent and low rates; investors could choose between fixed rate commission pricing and tiered pricing
・US$0.0035 Min. Commission Fee US Stocks
・0.015% Min. Commission Fee HK Stocks
Valid until 31 Dec 2024
MoneySmart Exclusive
MoneySmart Exclusive

Syfe

Minimum investment amount
HK$0
Annual Management Fee
0-0.65%
Subscription fee of Equity fund
0%

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Successfully open account and enter the code MS24 via MoneySmart and deposit ≥HK$10,000, can receive a HK$800 Apple Store Gift Card / HK$800 PARKnSHOP supermarket vouchers / HK$800 HKTVmall e-Vouchers!

Valid until 31 Dec 2024

Stocks Trading Platform in Hong Kong :

Stock Trading Platform Commission Fees (US Stock)Commission Fees (HK Stock)Features
Valuable Capital Brokerage AccountUS$0.99HK$0
  • Create account: online registration and activate account with e-signature
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Compare More Trading Accounts in HK!

FAQ

Why should I create a passive income?

It frees up your time to actually do the active work and protects the value of your money.

Can I create passive income through investments?

Yes, you can. Getting your money to work for you through investing in appreciable assets is a smart way to add money to your income stream.