Jakarta, CNBC Indonesiaa – Sam Dogen can be used as an example. Passive income allowed the 31-year-old to retire early from his job.

He is known to have passive income of US$ 380,000 or Rp. 5.9 billion per year. Two things made him able to do it.

Anything?

1. Bond Investment

The first is investing in bonds. Dogen said, bonds are one of the safest investments considering they are issued and supported by the government, which so far has never failed to pay debts.

Bonds also provide big profits, even if there is an increase in interest rates in the short term. As a test, someone can buy bonds with a term of 1 year with a return of around 5%.

“You could buy a $1,000 bond tomorrow with a 5% guarantee, and you wouldn't have to pay state income taxes,” says the book's author Buy This, Not That the.

Apart from bonds, Dogen also advises people to invest in shares. He talked about owning shares in the S&P 500 which could produce a return of 1.5%.

However, this man who was born in 1980 also noted that don't just choose stocksreturnsit's big. However, also choose one that can provide dividends for at least 25 consecutive years.

“Large companies, like McDonald's, have good cash flow and often pay out large dividends,” he suggests.

2. Property Investment

Dogen agrees that investing in the property sector does require time and effort. However, property can provide benefits that increase passive income per year.

“I recommend that everyone own property by owning your primary residence, especially if you know where you want to live for at least five years,” Dogen said.

Apart from that, property investment can also make someone more economical because they don't need to spend any more money, for example, to rent a house. If someone buys property, then expenses will be reduced and can be diverted to investment in other sectors.

“Once you have property, life becomes a little easier,” he said.

Thanks to these two methods, Dogen admits that he can now have passive income of IDR 5.9 billion per year. However, Dogen also reminded that there were times when the decision to retire made him feel bored. So, everything needs a process and time.

[Gambas:Video CNBC]

(sef/sef)