This article was first written in collaboration with StashAway in 2024, and we have updated it with the latest information. All views expressed in this article are the independent opinion of DollarsAndSense.sg based on our research, and is purely for informational purposes and should not be relied upon as financial advice. DollarsAndSense.sg is not liable for any financial losses that may arise from any transactions, and readers are encouraged to do their own due diligence. You can view our full editorial policy here.
The expanding gig economy has made side hustles available to almost everyone. Making an extra $1,000 a month is entirely possible, through freelance tutoring, photography, content creation, and even selling via e-commerce or becoming a home-baker.
What’s even more aspirational, though, is earning $1,000 in monthly passive income. Beyond just having more money, building passive income streams kickstarts our journey towards financial independence, where you don’t have to constantly exchange work for money.
One of the easiest ways all of us can start earning passive income is through income investing. This approach prioritises a stable, regular payout, diversifying away from riskier growth assets like equities, which typically don’t pay regular dividends and can be more volatile.
How Much Do You Need To Invest To Earn $1,000 A Month In Passive Income?
How much passive income you generate from your income investment partly depends on the yield that you can earn.
One example of an income investment is StashAway’s Income Investing powered by J.P. Morgan Asset Management portfolio1. Currently, the projected yield is about 4.9% p.a.
To find out how much you need to invest in the portfolio to earn $1,000 a month, you can use a handy payout estimator on StashAway’s website.
Source: All Screenshots from StashAway
As shown above, you need $245,000 in investments before you can start withdrawing $1,000 per month in passive income at its historical payout rate of 4.9% (as of 27 Feb 2026).
Those looking to park their funds in a low-risk and low-cost fixed income portfolio managed by professionals can consider Income Investing powered by J.P. Morgan Asset Management.
Taking a conservative stance, the portfolio also prioritises capital preservation and its ability to pay dividends, giving you the assurance of stable and regular income.
Read Also: StashAway Simple Cash Management Account Vs Regular Savings Accounts – What’s the Difference?
Work Towards A Monthly Passive Income Of $1,000
If you’re just starting to plan for your future and retirement income, setting aside $245,000 can feel like a far-fetched goal. But that’s why you always hear the common advice of starting as early as possible.
Younger investors who can still rely on a paycheck to fund their lifestyles can choose to reinvest dividend payouts, allowing their investments to compound and grow faster.
By choosing to reinvest your dividends, your money works harder for you, while leaning on J.P. Morgan Asset Management’s fixed income expertise to maximise your yield automatically.
You can also choose to reinvest your dividends for as long or as short as you want, and you can change your mind at any time to start receiving payouts.
Starting early and reinvesting your dividends gives you a longer runway to reach the $245,000 threshold needed to earn $1,000 in monthly passive income.
For instance, let’s say we can set aside $1,000 a month; we will take about 15 years to build a portfolio worth $245,000. If we can set aside more for our investments, we can drastically reduce the time required to grow our nest egg. Investing $1,500 a month shaves more than 4 years off our investment horizon.
And if we invest $2,000 a month, we will need only 9 years to build the same nest egg. In fact, if you invest $2,000 a month for 15 years, your portfolio could be worth more than half a million. This is based on the assumption of returns being 4.9% p.a.
| Year | Portfolio Value: Investing $1,000 Monthly | Portfolio Value: Investing $1,500 Monthly | Portfolio Value: Investing $2,000 Monthly |
|---|---|---|---|
| 1 | $12,000 | $18,000 | $24,000 |
| 2 | $24,588 | $36,882 | $49,176 |
| 3 | $37,793 | $56,689 | $75,586 |
| 4 | $51,645 | $77,468 | $103,290 |
| 5 | $66,176 | $99,264 | $132,352 |
| 6 | $81,419 | $122,128 | $162,838 |
| 7 | $97,409 | $146,114 | $194,818 |
| 8 | $114,182 | $171,273 | $228,364 |
| 9 | $131,777 | $197,666 | $263,554 |
| 10 | $150,234 | $225,352 | $300,469 |
| 11 | $169,596 | $254,394 | $339,191 |
| 12 | $189,906 | $284,859 | $379,812 |
| 13 | $211,211 | $316,817 | $422,423 |
| 14 | $233,560 | $350,340 | $467,120 |
| 15 | $257,005 | $385,507 | $514,010 |
| 16 | $281,598 | $422,396 | $563,194 |
Do note that the 4.9% historical payout rate for StashAway’s Income Investing powered by J.P. Morgan Asset Management is not guaranteed and may fluctuate with the interest rate environment
By investing regularly, those in their 20s and 30s can accumulate a much bigger retirement portfolio. Remember, you also have to account for inflation, which will constantly erode your spending power.
Invest With SRS To Benefit From Added Tax Savings
Even those in their 40s and 50s can still build up a sizeable passive income source before reaching retirement age. Regular income from your portfolio can supplement your monthly CPF LIFE payouts — paid out from our CPF Retirement Account — from 65 years old.
To further optimise the way you build a supplementary retirement income portfolio, you can invest in the Income Investing powered by J.P. Morgan Asset Management through your SRS account or Supplementary Retirement Scheme account.
Each year, you are eligible for a dollar-for-dollar tax relief when we top-up your SRS account by up to $15,300 (Singaporeans and PRs) or up to $35,700 (foreigners). Potentially, this can make income investing a more attractive proposition.
Monthly Passive Income Can Be Life-Changing
In the wise words of Warren Buffett (or at least it’s commonly attributed to him), “if you don’t find a way to make money while you sleep, you will work until you die”.
Earning a stable monthly passive income can be the first step in achieving financial independence. Once you start seeing your portfolio grow, you will not only gain more confidence to perhaps invest even more, but also enjoy compounding returns.
For example, while it’ll take you 9 years to accumulate a portfolio that will give you a monthly passive income of $1,000 (assuming you invest $24,000 a year, or $2,000/month), you only need another 6 years (or about 15 years in total) to accumulate enough to earn $2,000 a month.
| Year | Annual Investment | Portfolio Value | Annual Returns (Using 4.9% Historical Payout) | Monthly Income (Annual Returns ÷ 12) |
|---|---|---|---|---|
| 1 | $24,000 | $24,000 | $1,176 | $98 |
| 2 | $24,000 | $49,176 | $2,410 | $201 |
| 3 | $24,000 | $75,586 | $3,704 | $309 |
| 4 | $24,000 | $103,290 | $5,061 | $422 |
| 5 | $24,000 | $132,352 | $6,485 | $540 |
| 6 | $24,000 | $162,838 | $7,979 | $665 |
| 7 | $24,000 | $194,818 | $9,546 | $796 |
| 8 | $24,000 | $228,364 | $11,190 | $933 |
| 9 | $24,000 | $263,554 | $12,914 | $1,076 |
| 10 | $24,000 | $300,469 | $14,723 | $1,227 |
| 11 | $24,000 | $339,191 | $16,620 | $1,385 |
| 12 | $24,000 | $379,812 | $18,611 | $1,551 |
| 13 | $24,000 | $422,423 | $20,699 | $1,725 |
| 14 | $24,000 | $467,120 | $22,889 | $1,907 |
| 15 | $24,000 | $514,010 | $25,186 | $2,099 |
If you also invest more, you will reach the same financial goals sooner.
Receiving a stable passive income can also create a financial safety net that gives you the confidence to design a life on your own terms. This can take shape in lifestyle choices you treasure on a personal level – be it taking on more risks with other investment pots, pursuing more meaningful career paths, or even igniting passions that don’t require immediate financial returns.
Of course, another perk of earning a stable passive income is the peace of mind to provide a better quality of life for your family – be it an adventurous yearly holiday, maintaining a car, or enjoying a life that isn’t bound by work commitments.
Passive income can be your secret ingredient to a life of greater flexibility and freedom. StashAway’s Income Investing by J.P. Morgan Asset Management can be one of the tools that helps you start growing your monthly passive income and achieve your retirement goals.
Yet to open an account with StashAway? You can sign up with our DollarsAndSense link to enjoy 50% discount on fees for the first SGD 50,000 invested for 6 months.
Read Also: Investing With StashAway: How You Can Build Multiple Portfolios Through A Single Robo-Advisor
Disclaimer
1 For StashAway Income Investing portfolios that are powered by J.P. Morgan Asset Management, J.P. Morgan Asset Management provides StashAway with non-binding asset allocation guidance. You would be investing into an investment product which is established, offered and sold by StashAway and would not be investing in any J.P. Morgan fund. There is no contractual relationship between you and J.P. Morgan Asset Management or any of the J.P. Morgan Chase Parties nor has J.P. Morgan Asset Management considered the suitability of the investment product’s asset allocations against your individual needs, objectives, and risk tolerance.
J.P. Morgan Asset Management is not affiliated with StashAway and therefore makes no representations or warranties regarding the advisability of investing in any product or service offered by StashAway. This promotional material is not issued by J.P. Morgan Asset Management, any J.P. Morgan funds and fund parties, or other entities in the J.P. Morgan Chase & Co. group of companies. J.P. Morgan Asset Management and any J.P. Morgan Chase Parties have not reviewed the contents of the promotion material and accordingly take no responsibility for the accuracy of the contents or any liability for any statement or misstatement.
2 The historical payout is as of 27 Feb 2026. The historical payout shows the annualised monthly income payout generated by the distribution share class of the underlying funds in this portfolio. Note that past performance is not a guarantee of future performance. The figure displayed is net of fund level fees and all rebates.
3 *This figure is calculated based on the 4.9% p.a. portfolio yield as of 27 Feb 2026. Please refer to the full terms and conditions on www.stashaway.com/legal.
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