Our Active Income is derived from the investment of our time. Some term active income as dependent income. Basically, it means the income is dependent on the individual's presence.
For example, if the individual is not in the office, he won't be able to derive an income, thus this sort of income is labelled as dependent.
To attain financial freedom, one needs to build or create what we call, Independent Income or some say passive income. Independent income means the opposite of dependent income. That means, an income source that is continuously operating with or without your presence.
Some examples of Independent Income sources include Internet Marketing, Network Marketing and investments, etc.
As mentioned by Robert Kiyosaki, author of Rich Dad, Poor Dad, financial freedom is attained when your passive income is higher than your expenditure. Which also means you are in a state whereby, you need not work and yet you can settle your living expenses and debts.
Hence, I believe that in order to attain financial freedom, it is inevitable that you need to set out to create your own independent income.
When you manage to create one independent income source, you should then aim towards multiple streams of independent income.
Friday, March 2, 2007
Friday, February 23, 2007
Multiple Streams of Income (MSI)
Once you master the techniques of leveraging, you can create multiple streams of income (MSI) to multiply your profits.
MSI is simple concept and I believe you can understand what it implies simply by referring to its term.
Some people misinterpret MSI as taking up multiple jobs. While taking up many jobs might really bring you multiple streams of income, that is not the ideal way to do it to attain financial freedom.
My preferred way would be to use leverage on multiple arenas to attain financial freedom.
MSI is also a good way to diversify your income sources.
MSI is simple concept and I believe you can understand what it implies simply by referring to its term.
Some people misinterpret MSI as taking up multiple jobs. While taking up many jobs might really bring you multiple streams of income, that is not the ideal way to do it to attain financial freedom.
My preferred way would be to use leverage on multiple arenas to attain financial freedom.
MSI is also a good way to diversify your income sources.
Leverage :: The must-have tool for Financial Freedom
When I embarked on my journey towards financial freedom, my mentor taught me a very vital lesson on Leverage.
He said, "With leverage, one can then get things done by not being there, earn money when one is enjoying, enjoy life when the money keeps rolling in."
Leverage, to me, is the foundation necessary for financial freedom. Leverage, in layman terms, is to utilise the effort of others; to tap on a system to enable you to get your hands off the business and let the entire machine generate the profits for you.
How to Leverage?
The Answer is WORK YOUR WAY UP.
If you are a newspaper boy, delivering newspapers everyday, A STEP UP would be upgrading yourself to manage a team of newspaper boys, and earning a cut from the delivering.
A working system that can help you gain leverage is the network marketing business.
If you are currently doing a retailing business, you might think of WORKING YOUR WAY UP to become a wholesaler or distributor. Or, instead of managing the business yourself, train someone up, develop trust between each other, and relief yourself from the business.
Leverage means hard work first, reap profits later
Initially you may find yourself working hard to establish a system or train the people to do the job. However, the end result would be fulfilling and it would be bringing you closer to financial freedom!
He said, "With leverage, one can then get things done by not being there, earn money when one is enjoying, enjoy life when the money keeps rolling in."
Leverage, to me, is the foundation necessary for financial freedom. Leverage, in layman terms, is to utilise the effort of others; to tap on a system to enable you to get your hands off the business and let the entire machine generate the profits for you.
How to Leverage?
The Answer is WORK YOUR WAY UP.
If you are a newspaper boy, delivering newspapers everyday, A STEP UP would be upgrading yourself to manage a team of newspaper boys, and earning a cut from the delivering.
A working system that can help you gain leverage is the network marketing business.
If you are currently doing a retailing business, you might think of WORKING YOUR WAY UP to become a wholesaler or distributor. Or, instead of managing the business yourself, train someone up, develop trust between each other, and relief yourself from the business.
Leverage means hard work first, reap profits later
Initially you may find yourself working hard to establish a system or train the people to do the job. However, the end result would be fulfilling and it would be bringing you closer to financial freedom!
Wednesday, February 21, 2007
Reinvesting is the way to go!
I would like to share with you the best way to move towards attaining your financial freedom.
Do not underestimate the power of Reinvesting. It is the key to freeing yourself from the rat race and make you earn while you enjoy.
Reinvesting is simply the act of returning your revenue/income back into the the machine that just generated that money to you. And in doing so, you increase the efficiency of the machine to churn you back a higher return in the next cycle.
It's easy, let me show you some examples.
Example 1 : Payment of fee into "Get Paid to Do Survey" programmes
Most people would just complete the surveys and then be glad that they can get back their initial investment and then carry on earning that small portion of money. The brilliant ones would reinvest the money into signing up for different programmes so that they can have access to a whole wide range of "Get Paid to Do Survey" Programmes!
Example 2 : Investing in Stocks
Some people get very excited receiving dividends and are satisfied with receiving that amount of money every month. While others prefer reinvesting their money into buying more of that stock and get a larger amount of money.
I learnt that through reinvesting funds into certain investments, you will in turn receive a larger share of returns in the future.
Reinvesting is a simple concept. Why make it complicated? Start observing how you can apply this simple process into your life, investments, relationships. It will create wonders when you use it in a moral way.
Do not underestimate the power of Reinvesting. It is the key to freeing yourself from the rat race and make you earn while you enjoy.
Reinvesting is simply the act of returning your revenue/income back into the the machine that just generated that money to you. And in doing so, you increase the efficiency of the machine to churn you back a higher return in the next cycle.
It's easy, let me show you some examples.
Example 1 : Payment of fee into "Get Paid to Do Survey" programmes
Most people would just complete the surveys and then be glad that they can get back their initial investment and then carry on earning that small portion of money. The brilliant ones would reinvest the money into signing up for different programmes so that they can have access to a whole wide range of "Get Paid to Do Survey" Programmes!
Example 2 : Investing in Stocks
Some people get very excited receiving dividends and are satisfied with receiving that amount of money every month. While others prefer reinvesting their money into buying more of that stock and get a larger amount of money.
I learnt that through reinvesting funds into certain investments, you will in turn receive a larger share of returns in the future.
Reinvesting is a simple concept. Why make it complicated? Start observing how you can apply this simple process into your life, investments, relationships. It will create wonders when you use it in a moral way.
Friday, February 16, 2007
Why Attain Financial Freedom?
Attaining Financial Freedom allows one to have the maximum flexibility in controlling one's life. With the financial hassle in your life deducted, you can spend your time in relationships, hobbies and leisure.
Having the end in mind is important in the process of attaining financial freedom. Hence you should visualise the wonderful state you will land yourself in when you are financially free.
With this, I start off this Attain Financial Freedom Blog!
Having the end in mind is important in the process of attaining financial freedom. Hence you should visualise the wonderful state you will land yourself in when you are financially free.
With this, I start off this Attain Financial Freedom Blog!
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