As a student living in Singapore, a monthly allowance of S$100 just isn’t enough. You could easily spend it all in one afternoon at a restaurant or shopping for a pair of sneakers. Many of your friends may work part-time jobs, like tutoring or babysitting to supplement their allowances. If you’re busy with school and an internship, there are other ways to multiply your allowance. Here are eight tips to earn passive income as a student in Singapore.
1. Invest in STI ETF
ETF stands for exchange traded fund, which are listed and traded on a stock exchange. By buying shares of the ETF, you have small ownership of the total fund. Typically, an ETF tracks a stock index, and Singapore has its own called the Straits Times Index (STI). The STI tracks the performance of the top 30 companies listed on the stock exchange in Singapore.
For beginners who are just getting started on their investment journey, STI-ETF is a low cost, low-risk way to invest your money in top-performing local companies with a regional presence. You’ll have a diverse portfolio of ETF in companies across different industries in Singapore. If you’re 18 years old and above, you can start investing in STI ETF with major banks in Singapore such as POSB/DBS, OCBC, UOB. These banks offer investment savings plans which you access to blue-chip ETFs from as low as S$100 a month with up to 3% p.a returns. While you’ll only see significant gains in 3 to 5 years, this helps to grow your savings long-term, and also protects your money against Singapore’s yearly inflation rate of ~0.4%.
2. Invest in cryptocurrency
Bitcoin (BTC) is the world’s first digital currency without a central bank. As the oldest and largest cryptocurrency in the world, its value has continued rising over the past decade. After an announcement that Tesla purchased US$1.5 billion worth of Bitcoin (BTC), the cryptocurrency has since reached its all-time high of US$58,000, as institutional and corporate investors have also started pouring money into the crypto sphere. While it may be unachievable for retail investors to own one whole Bitcoin at the moment, you can still own a small fraction of it for a few hundred dollars. Bitcoin has been touted as a store of value in the digital era, and could even hit US$100,000 at some point. With Apple Pay now supporting Bitcoin payment, signs point to mass adoption of the cryptocurrency in the future.
Besides Bitcoin, there’s also Ethereum (ETH), which also recently hit its all-time high of US$2000. ETH serves as a means of payment for crypto transaction fees between exchanges and wallets. There are hundreds of cryptocurrencies out there, and some are backed with solid projects with real-world usage, such as Aave (AAVE), a peer-to-peer lending platform on Ethereum, Binancecoin (BNB), a token launched by Binance online exchange, native to the Binance blockchain which reduces transaction fees on the exchange.
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