Category Archives: Passive Income

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How Much Does Your Life Worth?

“Your Money Or Your Life” is one of the personal finance books I read during my undergraduate time. The ideas outlined in the book were new and interesting to me during that time, particularly the ideas of “real” hourly pay and life energy.

If you haven’t read that book, you might be asking what the hell is “real” hourly pay? Is there a “fake” hourly pay? Well, let read on and see whether the answer will surprise you.

The idea of “real” hourly pay is simple; it basically means you need to consider your extra expense and time you incur when you are holding a job when you are calculating your hourly pay.

For example, if you are getting $1,600 a month, working 20 days per month, 8 hours per day, you might come to the conclusion that:

Hourly Pay = $1,600 / (20 X 8 hours)

= $10 per hour

1.) Traveling: 2 hours per day, 40 hours a month

When calculating your “real” hourly rate, you will need to consider the time and money spent due to you holding a job. For example:

Unless you are the minority who are working from home, you will spend some time every workday travel from your house to your work place. Assuming you spend 2 hours per day traveling to and fro your workplace.

2.) Business attire: $100 per month

Obviously you won’t be wearing your T-shirt and short pant to impress your boss and client when you are climbing the corporate ladder. So, let’s assume that you buy a decent business attire every 2 months, and that cost you $200.

3.) Business lunch: $4 a day, $80 a month

Let’s face it, packed lunch at workplace are more expensive than your home cook meal. And we are not even considering the health issue involved if you can only get junk food for lunch around your workplace. Let’s assume that you spend $4 more a day if you buy your lunch from workplace, and in a month, it is $80.

4.) Relaxation: 1 hour and $5 a day

So, you finally finish your work, you sit through the peak hour traffic jam, and step into your house. Are you coming home more energized that the morning and all ready to spend quality time with the family or you are insanely busy at workplace today and you need a beer/popcorn/cake/TV to relax yourself first?

I am guessing here, let just say you spend one hour and five dollars a day to relax yourself after work, which is 20hours and 100 dollars in a month.

5.) Work related sickness: $100, 10 hours per month

Do you have any work-related sickness either physically or emotionally that require long-term treatment? Let’s assume you spend $100 and 10 hours a month to treat or prevent work-related sickness.

6.) Others: $100, 20 hours per month

Any other expense that you think is work-related in your situation? Childcare? Laundry? Housekeeping? Car maintenance? Time spent on fighting with your partner due to stress at work? Everyone’s situation is different and you will have to find out yourself what other expense (either time or money) that occurs because of you holding a job. For the ease of calculation here, I will pick an arbitrary number of $100 and 20 hours per month.

So, now let’s calculate your “real” hourly pay:

Monthly pay: $1,600

Working hours: 160 hours

Traveling: 40 hours per month

Attire: $100 per month

Lunch: $80 per month

Relaxation: $100, 20 hours per month

Sickness: $100, 10 hours per month

Others: $100, 20 hours per month

The “real” working hours = 160 + 40 + 20 + 10 + 20

= 250 hours

The “real” monthly pay = $ 1,600 – $100 – $80 – $100 – $100 – $100

= $1120

The “real” hourly pay = $1120 / 250

= $4.48 per hour

So, here you are, your “real” hourly pay you are getting now. Is it less than what you expected or more than what you expected? The idea you need to keep in mind here is remember every time you spend $4.48, one hour of your life energy investment is gone forever. I bet you will think twice next time when you see that fancy smartphone that cost you 40 hours of your life!

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How To Earn Money From Credit Card

From the past 2 years, banks have started offering their credit card to consumer with some cash credit thrown in. Consumers need to fulfill certain condition to enjoy that cash credit, normally that involves consumer to complete a successful transaction within the first month of the card got approved.

What is cash credit? In simplest term, they are free money that banks deposit into your credit card account after you met certain condition they set. The amount of cash credited into your account depends on which bank offer you took on, it could be $40, $50, $80 or even $160.

Some of you might ask, why are the banks giving out free money? It doesn’t make business sense and is there any gimmick or marketing plot behind this offer? I don’t have the numbers to back me up, but I believed the banks has run their number before this promotion and they knew what kind of revenue/profit each credit card holder would generate for them.

What I am more concerned is how can I benefit from all these offers? It turns out pretty simple, I took up the offers from MayBank, Standard Chartered Bank, ANZ Bank and HSBC Bank, they have offered $50,$40,$160 and $80 worth of cash credit to me after I fulfill the conditions:

  1. Completed at least one transaction of certain amount ($1 to $40 depends on the offer) within the first month of the card got approved.
  2. Hold the card for a certain period of time (9 months to 1 years, depends on the offer) before you phone in your card cancellation request.

Different bank has different offer, I recommend you go check out their offer on their website and see if you see something you like. It is by far the easiest way I found to earn some extra money.

Note: However, if you knew that you cannot control your spending once you get on hold of a new credit card and mostly likely end up accumulate credit card debt, then the recommendation above does not apply to you yet. The first thing you should learn is how to reduce your spending while increase your happiness.

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