News of recession starts looming closer and closer as we reach the second half of the year. With our inflation rate reaching 3.4% in June, even in a kampung or a small township, the cost of living has increased tenfold compared to what it was just five years ago. Food prices have increased so rapidly that we’re now encouraged to be self-sufficient. Now, a piece of prevalent advice we’ve heard since the recession looms over our nation is for everyone to start earning passive income.
So, What Is Passive Income?
Passive income is an income that doesn’t involve your active involvement. Having passive income nowadays has become rather crucial. It’s one of the many ways to survive this inflation and recession-proof your life. It’s no longer viable to rely on your job to survive solely. But fret not; we’ll list some common ways to earn passive income without quitting your job.
1. Rent out your property
You’ll need an investment property or land you can rent to accomplish this. However, it’s not as simple as you think. The amount you lease the property or land out has to be more than what you pay out for in terms of the mortgage, loan, insurance or managerial fees.
Before you venture into buying a property or land to lease out, you’ll need to research the property’s location and consider if it’s strategic enough to garner demand. Then, you’ll have to buy the property and start renovating it to make it hospitable for renters. As profitable as this method is to earn passive income, it isn’t advisable for those who may not have sufficient start-up funds, and the steps take a lot of time.
2. Create templates online
If you have a knack for graphic design or writing, you could create intellectual property online that could be for sale. Apart from templates, you could also create and sell:
- Software or apps
You could sell your intellectual property on multiple websites such as Canva, iStock, Pexels, and so much more. However, you need to market yourself pretty well to gain customers. To make this lucrative, you’ll have to ensure that your personal brand is strong and your services receive sufficient exposure.
3. Have a low-risk investment account
You may think low-risk investments have a lower payout than high-risk investments such as NFTs and cryptocurrency. However, dividend-payings funds such as Amanah Saham Nasional Berhad ( better known as ‘ASNB’) and Kumpulan Wang Simpanan Pekerja (also known as ‘KWSP’) have a 5 – 7% dividend per annum. ASNB or ASB only requires a minimum of RM 10 to start your investment journey, and you could grow your investment at a slower but steady pace as opposed to riskier investment portfolios.
In Malaysia, as an employee, you are entitled to a savings fund under the KWSP known as an Employees Provident Fund. Having an EPF account ensures that you have sufficient savings for your retirement and emergencies. EPF has recorded a 6.1% in dividend in 2021. However, be mindful of withdrawing from such accounts as it could potentially be risking your acquired savings in these accounts.
4. Earn through driving
If you have the time flexibility during or after your working hours, you could sign up as a Grab Driver or Pink Driver. However, the pre-requisite is that you’ll need to own a car of your own and have a valid driving license. This may require much effort as you must drive around and be patient when dealing with customers. Many choose to be a Grab or Pink Driver full-time and can make a living when done consistently.
If you’re willing to take on more risk or have a higher disposable income, you could look into investing in cryptocurrency. Cryptocurrencies are considered very high risk and not advisable to those who do not have high savings. Malaysia has a designated platform the Security Commission has approved called Luno. Crypto investors would buy cryptocurrencies at a low price and trade them back in or “sell” them when the exchange value increases as the crypto market booms. Many first-time crypto investors were severely affected by the recent crypto market crash when inflation in the US increased to 9.1%.
6. Run simple errands
If you have flexible working hours and perhaps even own a vehicle, you could also run simple errands apart from becoming a Grab driver. GoGet is a website similar to its well-known American counterpart, Postmates. However, Postmates might be restricted only to food and beverage delivery. As a GoGetter, you’ll be able to help and get paid for any assigned tasks. Categories of tasks on the website are:
If perhaps moving bulky things and setting up event spaces or booths sound too draining for you, you could just opt to work on “Home” based errands.
7. Refer your friend to a job
I’m sure you’re wondering, how can you earn by just referring your friend to a job? You can sign up as a referrer on Recruitopia and earn a referral reward once your friend gets a confirmed placement. Not only you’ll help your friends get their dream job, but you’ll also grow your network as a referrer and learn essential skills along the way. All you need is a laptop and your friend’s consent to send over their CV or resume to the job openings on our platform. It’s easy, quick and hassle-free.
All in all,
A full-time job no longer guarantees a good or comfortable life nowadays. The pandemic has shown us that you can never ensure job security and must diversify your income. We hope that the alternatives we’ve shown help you in these trying times but also give you the hope that you can survive and expand your bank balance.