A Personal Finance Blog for Malaysian: 开源节流

Thursday, September 30, 2010


In mandarin, 开源节流 comprises of two phrases
  • 开源 which means add sources.
  • 节流 which means reduce outflow.
My version of 开源节流 in personal finance,
  1. First, top priority is, to increase total income (active income as well as passive income or smart income) and add additional source of income to achieve "MSI" (Multiple Sources of Income).
  2. Then only to think how to cut wastage and unnecessary expenses.
Both the subject of 开源 and 节流 can be further illustrated in another blogs or articles, hence here only briefly explore the keywords.

  • 开源 - better pay, more allowance, online business, rental income, dividend
  • 节流 - only buy what i need (not what i want), save/cut cost (without affect my strategy of 开源) (e.g. use credit card that give 5% rebate), change light bulb to energy saving, use hot water.
What is yours idea of 开源 or  节流?


  1. 开源- More passive income like property investment (collecting rental)

  2. The word "Passive" means literally no activity is required. I think it is misleading to certain extend.

    Rental income does required activity. Dividend income also (read annual report, analyse company performance, update news etc).

    The only real passive income may be is the pocket money (or similar arrangement) from parent (or grandparent) to children.