The passive income that helps you do nothing is still enough for a lifetime, but Shark Hung points out that most people are wrong in calculating this factor!

The passive income that helps you do nothing is still enough for a lifetime, but Shark Hung points out that most people are wrong in calculating this factor!!

Shark Hung takes the example of an investment of 1 billion VND to buy cars, and then rent for 20 million VND / month. The income you do not do is still called earning income. But wait, you are missing a factor. Do you know the depreciation value of a car up to VND 15 million / month? You are investing "once and then eat" and "structure" from the depreciation of that car to "eat" ...

Achieving financial freedom and early retirement before the age of 30 or 40 is the goal many young people want to make. Achieving a level of financial freedom requires a passive income - that is, making money even if you don't work - enough to cover your daily expenses.

Sharing about the recent passive income concept, Shark Pham Thanh Hung - Vice President of CENGroup - explains: As its name suggests, Passive Income is that you don't have to do it but money is still born. out.

"As you say, you can rest assured, your money is profitable. That's passive income," said the shark of Shark Tank Vietnam seasons.

Understand simply, when you invest in real estate and rent, the income from leasing real estate is called passive income. Or interest and income arising from savings and bond purchases, also called passive income. That is, you do not have to do anything and still have income.

However, there is one factor that when calculating the passive income many young people overlook.

Suppose you invest 1 billion VND to buy a car and rent it, collect 20 million VND / month. The income of 20 million VND / month regularly is called passive income?

Wait! Did you know after 3 years of rental, the value of the car is only 1/3 or 1/2? All income comes from car rental activities, in essence, you invest 1 time and "gradually eat", not passive income.

"You" structure "from the depreciation of that car. Why? Because when you invest in a 1 billion car, rent 20 million, the depreciation of that car is essentially lost about 15 million / month already, "Shark Hung calculated.

Understand simply, the actual passive income for this investment is as follows:

- Initial investment: VND 1,000,000,000

- Income earned after 3 years of car rental: 20,000,000 * 12 * 3 = 720,000,000 VND

- Vehicle depreciation after 3 years: 15,000,000 * 12 * 3 = 540,000,000 VND

- Actual passive income (Car rental fee - Depreciation): 720,000,000 - 540,000,000 = 180,000,000 VND

=> Passive income / month = 180,000,000 / (12 * 3) = 5,000,000 VND

"That we have to count. One is the regular income from the exploitation of that asset / investment, the second is to fluctuate the value of the investment after a period of exploitation. Pay attention to these two factors when we decide to have an investment in passive income, "Shark Hung said.

Binh An