Filipinos know the importance of working hard and earning an honest day’s pay. But aside from actively hustling for that dough, another savings hack worth considering is earning passive income, as it helps you earn without expending too much time and effort.
Let CIMB Bank Philippines, the Best Digital Bank in the Philippines according to The Asian Banker, guide you in understanding what passive income is and help you set up your own passive income stream.
What is passive income?
“Passive income is money you earn from sources other than your primary job or business,” said Dennis De Silva, Vice President for Finance at CIMB Bank Philippines and a banking and finance professional for 20 years. “Unlike your job or business, where income is dependent on the number of hours you worked, customers served, or merchandise sold, passive income allows you to earn cash with less day-to-day engagement.
“Passive income does not necessarily mean being lazy with your money – it’s about being intentional with time,” he said. “It is not about making money while sleeping or creating and growing it without doing anything. The truth is it takes clarity and discipline.”
Some common sources of passive income are high interest savings accounts, earnings from rental properties, stock dividends, and other projects where you are not actively involved in the generation of revenue. They help in allowing you to make money in the background as you go on with your usual day-to-day life.
Why is it worth having a passive income source?
“One day, our strength will fade but our dreams will still ask for more. Passive income isn’t just a personal finance strategy – it’s an act of self-respect. It’s a way of saying, ‘I don’t want to trade all my time to survive.’ Passive income isn’t about becoming rich overnight – it’s about giving options to your future self,” shared De Silva.
He underscored the importance of having a passive income source as a way of futureproofing not just your finances, but your life as well. He says that every peso you set aside today and put to work, whether in a savings product, a time deposit, or a modest investment, becomes a small vote for freedom tomorrow.
Ultimately, earning passive income can help you develop peace of mind even if you’re not actively working, as your passive earnings can be used for other expenses and reduce financial stress. It can also help you create a financial safety net in case of emergencies.
“As your money compounds quietly, it one day buys you something priceless: breathing room. It’s not just about how much you make, but what you choose to preserve. That’s why setting up a passive income source is worth it. Not just for the money, but what it makes possible,” he said.
If you’re looking to dip your toes into setting up a passive income source for yourself, you can look into starting with options that are easier to arrange. For instance, consider a digital time deposit, such as CIMB Bank PH’s MaxSave Time Deposit, which allows you to earn as much as 5.5% interest per annum. For as low as PHP 5,000, you can start diversifying your income sources and try out flexible terms that align with your goals and risk appetite. You can get started with a short 3-month term just to learn the ropes, manage your mid-term goals for 6 months, or even pursue your long-term financial goals with 12- to 24-month periods. The interest you’ll earn during this period is fixed as well, helping protect your money from market fluctuations.
Opening a MaxSave Time Deposit can be done in minutes and only requires an active and fully verified CIMB Bank PH deposit account. Simply open the CIMB mobile app, go to the product selection page, select MaxSave Time Deposit and accept the terms and conditions, choose your preferred deposit amount and time period, enter your MPIN, and you’re all set!
Make your money work harder for you today through opening your own MaxSave Time Deposit today. To learn more, visit www.cimbbank.com.ph/maxsave.
