Recently, an increasing number of individuals have started to take notice of the notion of “post-slumber revenue.” What exactly does this income entail? Elucidating its essence holds paramount importance for life planning and career decisions. It possesses three distinct characteristics: automaticity, sustainability, and profitability.
To begin with, the wages earned by a salaried employee do not align with this type of income. If one were to resign from their occupation, their salary would cease. Additionally, vacation time leads to a reduction in salary. The employer is exceedingly frugal. Wages do not constitute automatic income. The emphasis on “after-sleep” underscores a natural and involuntary state wherein one can generate income even while asleep.
Another characteristic is continuity. Cash inflows persistently enter the account, or asset prices perpetually appreciate in the long run. This process unequivocally does not conclude after a solitary event. Continuous cash inflows and asset appreciation bestow a sense of control over one’s life, alleviate concerns, and expand the array of travel options spanning great distances. The world is vast, and my desire is to explore it. Continuous accumulation of wealth serves as the material foundation for anyone aspiring to voyage across the globe.
Without such a foundation, there exists a certain probability that the destinations one ventures to in the outside world would resemble “industrial parks” in Southeast Asia. These locations are enclosed by barbed wire and guarded by fierce dogs and robust men armed with firearms. The means of production do not consist of machinery and lathes but rather 20 mobile phones per person. Similarly, my daily occupation lacks complexity. I merely peruse dating websites in search of single women, engaging in “conversations” with them. It is disheartening to witness young individuals compelled to engage in fraudulent activities.
Returning to the topic of “post-slumber income,” its final attribute is profitability. This feature holds significant importance, signifying that one’s assets must yield substantial actual returns, not just nominal returns.
Bank deposits are increasingly falling into this category. Currently, complex factors contribute to the decline in bank deposit rates. If inflation is taken into account, the actual return on deposits is likely to be negative or negligible. The downward trend in interest rates appears unlikely to change in the foreseeable future.
Continuous cash inflows and asset appreciation bestow a sense of control over one’s life, alleviate concerns, and expand the array of travel options spanning great distances.
The profitability characteristic also excludes the houses owned by many individuals. The ongoing income derived from a house stems from rent, yet the actual scenario often entails monthly rent that falls far short of the monthly interest paid to the bank. A friend from a second-tier city in the western region conducted a rudimentary “mathematical problem”: employing the most common equal principal and interest repayment method employed by Chinese homebuyers, the monthly interest payment made to the bank surpasses the rent by 2.5 times. Please note that the aforementioned statement solely pertains to the interest he pays, excluding the monthly principal repayment.
I firmly believe that this case is by no means an isolated incident for my friend. Should you harbor any doubts, I encourage you to peruse your own bank mortgage statement.
Consequently, the rent income of many individuals does not qualify as “post-slumber income” and lacks actual positive profitability. When the cash inflows and outflows associated with the house are tallied, the net cash flow is likely to be negative. Should the house fail to appreciate in value or appreciate insufficiently, complications may arise.
Clearly, acquiring authentic “sleep income” is no easy feat.
From a global perspective, a majority of “post-slumber income” manifests in blue-chip stocks within the stock market. Should one be willing to retain ownership of such stocks, they will yield stable dividends. Alternatively, should one choose to sell them, considerable capital gains can be obtained.
Coca-Cola serves as an exemplary case. In 1919, Coca-Cola’s stock price stood at $40. If an individual purchases a single share and retains ownership until 2022, its value will amount to $20 million—a 500,000-fold increase. Over a span of slightly more than a century, discounting inflation, the compound growth rate equates to approximately 14%. Although this figure may not appear overwhelmingly impressive, one must bear in mind that it spans over 100 years of growth, which is a rarity among companies worldwide.
However, this represents an extreme example. In reality, it is a challenge for many investors to identify stocks that have consistently grown for a decade.
Furthermore, investment in commercial real estate proves advantageous. In the event of a thriving offline consumption environment, commercial real estate generates stable cash flow and fosters sustained positive income. Nonetheless, discovering such investment opportunities presently necessitates patience.
Following over four decades of economic growth in China, the nation’s populace has amassed vast wealth. It is only natural that an increasing number of people attain “post-slumber income.” “Post-slumber income” should not be an exclusive privilege reserved for aselect few, such as major shareholders in the stock market and cross-border asset allocators.
The issue of “post-slumber income” encompasses the mechanisms of the financial market, the enhancement of the legal system for investors, and the mobilization of private sector enthusiasm for investment and residents’ zeal for consumption. It constitutes an exceedingly intricate and comprehensive project. Hence, one approach involves the ongoing deepening of reforms in certain domains.