When people think about passive income, they often assume you need a six-figure portfolio to make it worthwhile. I don’t think that’s true. With the right structure, even $20,000 can be enough to start generating a reliable monthly income stream, without constantly watching the market or trading in and out of ASX shares.
Here’s how I’d think about doing it.
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Where to start
Most ASX shares pay dividends twice a year. That can be frustrating if the goal is steady cash flow. One of the biggest advantages of income-focused exchange-traded funds (ETFs) is that many of them pay monthly, smoothing income and making budgeting far easier.
Instead of relying on one company’s dividend policy,…
