Quote:
Originally Posted by Jt1990tj
From what I read, passive income apart from your salary is very important. Been trying to build that part of my income but haven't been successful.. my divided portfolio all cut dividends, share price drop, salary also never increase that much
But from experience, jump company is the fastest way to get a pay hike, but downside is you start all over again, learning new processes and meeting new people. Running your own business also comes with a lot of risk, hardwork and dedication (hats off to bros here who managed to kickoff your own businesses). I've friends on both spectrum, those who are doing really really well, and those who are living day by day, don't know whether their business will fail or not etc.
Never had the balls to go out and venture into my own business, so got myself to blame on that.
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when u invest, ensure a margin of safety. businesses with an economic moat can have a higher margin of safety
for reits: lower price to book, lower debt ratio, tenant diversification, geographical diversification, increasing dpu (or at least stable dpu), high occupancy rates, and a imba sponsor (in local context)
for blue chips: low debt ratio, geographical diversification, reasonable payout ratio (they dont borrow to pay dividends), revenue/profits not decreasing (at least stable), some defensive elements (telcos, utilities, transport)
when u receive the dividends, u can choose to plough it back in. otherwise, it can supplement your daily expenses or cheonging
must do your homework before u decide to invest, do your own due diligence DYODD