Saturday, September 6, 2008

The Need to Diversify From REITs

This entry is actually a reminder to myself to diversify away from REITs. True, REITs do give a much higher yield than most dividend yielding stocks... but still I feel this innate need to diversify away from REITs to some blue-chip stocks so as to not place all my "passive income" eggs into one basket (REITs listed in the Singapore Stock Exchange).

Alternative Source of Income #1: Blue Chips or Dividend Yielding Stocks

I have been looking at blue chips in the Singapore Stock Market though I am not closed to the idea of investing into other markets too.

Stocks that I am looking for are ideally those with boring businesses that can tide through any economic crisis as well as a history of good dividends. This is to avoid buying into companies that are not able to pay out dividends regularly. The key is to buy companies instead of buying companies for the sake of their dividends alone. This will help me diversify my sources of income to attain my financial freedom goal of $2800 per month by 2022.

Alternative Source of Income #2: Adsense

Another stream of passive income that I have been looking into is Adsense. However, I realised that this has been very difficult and certainly not "passive" as I have to put in extra hours after work to improve upon my blogs, create new postings,etc. Still, it provides me with an alternative source of income. After becoming more active in blogging, I have also seen my daily adsense earnings rise steadily. To see my daily adsense earnings, click here. I just started recording it and it is definitely nothing spectacular. The amount I earn a day is not even enough to buy coffee. But what this record shows is that it is possible for one to earn money from Google's Adsense.

In the month of Sep 08, I will work at increasing my passive income from this 2 alternative sources of income since I have already attained my passive income goal of $200 per month for this year.

No comments:

Post a Comment

Popular Posts