Who is PIE?

Who is Passive Income Earner?

Hi, I’m the Passive Income Earner. I also go by other names, such as Kay Ng on Motley Fool Canada and Sure Dividend, and Canadian Dividend Growth Investor on Seeking Alpha . I’m based in Canada and I’m on a journey to build a passive income with dividends. And you’re welcome to join me!

This passive income presently complements my active income. The aim is to replace the active income with the passive income when I retire. I have a long way to go but starting early is key.

In this blog, I share my experience in personal finance and investing, including mistakes I made and lessons learned. Occasionally, I will also write about financial and investing concepts I learn from reading articles and books, and my applications of those concepts.

My first jobs were working full-time in the IT field. On the side, I learned about investing to help work towards my financial independence.

I don’t remember the public school system teaching about money. I do remember a high school classmate who overspent and used new credit cards to cover for their old credit card payments. I never wanted to be in that kind of situation.

Personally, I picked up my savings habit from my frugal parents who always spend less than they earn. So, I was very glad when I learned in 2016 that finally, as a part of the elementary school curriculum, kids are being taught about income, expenses, and budgeting, which will be helpful towards getting the children to understand how to manage their money in this materialistic world.

How Passive Income Works

The passive income I am building has a focus on investing in Canadian and U.S. dividend stocks. Actually, most of the companies I buy pay a growing dividend every year. This means that my passive income stream will continue to grow every year.

However, I don’t just care about the dividend. I try not to overpay for companies, too. The higher the valuation you pay for a company, the lower the returns (and the lower the dividend yield) you get. So, my primary strategy combines value and dividend investing.

The idea is to build a portfolio of quality stocks whose dividends grow at a rate that outpaces inflation. Now all that sounds exciting; however, one must understand that passive income can only be driven by active income, at least initially. As a result, working hard, spending less, and investing smart is what I believe will lead to a comfortable retirement when the time comes.