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Get Paid While You Sleep
One rewards what you create. The other rewards what you already have.
FinMeUp
September 03, 2026
A note from us to you
Last time, we covered rental income and it scored 6/10, the strongest of the three streams so far, because it pays you twice: once through the rent, once through the property appreciating underneath it.
This instalment is about two streams that couldn't be more different from each other. Royalty income rewards you for creating something once. Interest income rewards you for having capital sitting somewhere. One depends entirely on your output. The other depends entirely on your balance.
Paul-Gordon and I walk through both, and where each one falls short on our latest YouTube video. Check it out below.
7 Streams of Income | Royalty and Interest Income
Watch the full breakdown on our YouTube channel HERE.
The Framework, quick reminder
Same five criteria as always, each scored out of 2: does it beat inflation, is it passive, is it secure, does it need capital to start, and how well does it hold up against tax.
Stream 4: Royalty Income
Income earned from something you created: music, writing, art, intellectual property.
Criterion | Score | Why |
|---|---|---|
Inflation | 2/2 | Strong creative work tends to appreciate well ahead of inflation, especially in art and music catalogues. |
Passive | 1/2 | You can create it once and earn from it for a while, but royalties fade as a piece loses relevance. You need to keep creating to keep the income going. |
Security | 0/2 | No floor. When demand drops, the income drops with it. |
Capital required | 2/2 | No cash outlay to start. The only capital is time, the hours it takes to get good enough to create something people pay for. |
Tax | 0/2 | Royalty income is taxable, with no meaningful relief built in. |
Total | 5/10 | Royalty income rewards genius, not effort. It can outperform inflation and needs no capital, but it has no security and no tax advantage. |
Stream 5: Interest Income
Income earned on capital placed in interest-bearing assets: bonds, money market instruments, savings.
Criterion | Score | Why |
|---|---|---|
Inflation | 1/2 | Interest rates are tied to the repo rate, so returns track inflation loosely but rarely beat it by much. |
Passive | 2/2 | Fully passive once the capital is placed. No ongoing effort required. |
Security | 2/2 | One of the more reliable asset classes available. |
Capital required | 0/2 | You need capital to earn interest. No capital, no income. |
Tax | 0/2 | The exemption is capped. Beyond that threshold, it's taxed like any other income. |
Total | 5/10 | Interest income is the trade-off stream: what it lacks in growth and tax efficiency, it makes up for in reliability and zero effort. |
Coming up in our Next Episode
Jaco and Paul-Gordon move into Capital Gains and Dividend Income, the final two streams and the ones that tend to score highest on this framework. Worth understanding before you assume they're only for people who already have money.
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Which of these two would you rather build first? |
Whichever you picked, the honest next step is finding out where your current streams actually rank. A 30-minute call with one of our advisors is where that conversation starts.
Note: This newsletter is for informational purposes only and does not constitute financial advice. For personalised financial advice, you can book to speak to a financial advisor here (powered by a registered FSP: No. 51310).
Your money matters. Make it count.
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